Merging troubled LVB will boost DBS's retail biz in India: Moody's

The merger will not alter DBS group's credit profile and the effect on its capital will be immaterial

Rating agency Moody’s today said the proposed merger of troubled Lakshmi Vilas Bank (LVB) with DBS’s Indian subsidiary will strengthen latter's business position by adding new retail and small and medium-sized customers.

DBS Bank India's loan book is mostly focused on the corporate and SME sectors. The acquisition will help DBS complement traditional physical branch banking with its digital strategy in India.

The merger will not alter Singapore-based DBS group’s credit profile. The effect of merger on DBS's capital will be immaterial.

“We estimate that DBS India's customer deposits and net loans will increase by about 50 per cent-70 per