Rating agencies upbeat on cash-starved Lakshmi Vilas Bank merger with DBS

This deal is positive for India's banking sector and will bring much-needed relief to LVB, which has been struggling for many years, S&P said in a statement

Global rating agencies are upbeat on the proposed merger of cash-starved Lakshmi Vilas Bank with the Indian arm of Singapore’s DBS Bank, saying it demonstrates the Reserve Bank of India’s (RBI’s) willingness to give control of banking assets to foreign entities.

Previously, the emphasis had been to look at homegrown institutions. In the bailout of private sector YES Bank earlier this year, the RBI called upon government-controlled State Bank of India and other large Indian banks for capital support.

Standard and Poor’s (S&P) on Thursday said the swift resolution of LVB will keep contagion at bay and maintain stability in the banking