BANKS
Bombay HC refuses to stay Lakshmi Vilas Bank-DBS merger
In a setback to the promoters, the Bombay HC has refused to stay Lakshmi Vilas Bank's merger with DBS which will be effective from 27 Nov.
In a setback to the promoters, the Bombay HC has refused to stay Lakshmi Vilas Bank's merger with DBS which will be effective from 27 Nov.
Adivision bench of Justices Nitin Jamdar and Milind Jadhav was hearing petitions filed by a group of promoters of the troubled Lakshmi Vilas Bank and Indiabulls Housing Finance Ltd, challenging the merger.
"We are refusing the interim relief sought by the petitioners to stay the amalgamation. The petitions shall be placed for hearing on 14 December when the respondents (Reserve Bank of India, LVB and DBS Bank India) shall file their affidavits in reply," the court said.
On Wednesday, the Union Cabinet gave approval to the Scheme of Amalgamation of Lakshmi Vilas Bank with DBS Bank India Ltd to protect the interests of LVB's depositors and employees.
LVB will cease to exist from 27 November and all its 563 branches will function as DBS branches from Friday. Moratorium that was imposed on LVB on 17 November will also be lifted on the same day.
The year has seen the fall of two private sector banks. In March, Yes Bank was rescued by the State Bank of India.
