Invest Smarter, Here's how to achieve Your Dreams 80% Faster - Let’s Get Started!Trusted by 10 lakh+ Indians
Dream Home
Dream Wedding
Dream Car
Retirement
1st Crore
credit-cards

What Led to Lakshmi Vilas Bank's 2020 Merger with DBS?

banking-image
Jul 23, 2024
15 Mins

Lakshmi Vilas Bank, a notable entity in India's banking industry, was founded in 1926 to address the financial needs of traders and farmers in Karur. Initiated by seven entrepreneurs, spearheaded by V.S.N. Ramalinga Chettiar, the bank began with a keen emphasis on commercial banking and eventually broadened its offerings to include wealth management services. Registered under the Indian Companies Act, operations were swiftly initiated. A milestone was achieved in 1958 when the Reserve Bank of India (RBI) granted it the status of a 'scheduled commercial bank', which propelled the bank's expansion and led to the acquisition of nine other banks, thereby broadening its national reach. Nevertheless, Lakshmi Vilas Bank encountered financial troubles that jeopardized its stability. The situation became critical in 2020 prompting RBI to enforce a moratorium to safeguard depositors by limiting withdrawals. The resolution came with an RBI-facilitated merger with DBS Bank India Ltd., finalized on November 27, 2020. This amalgamation incorporated the bank’s branches into the DBS network, bolstering its operational strength. This strategic unification maintained Lakshmi Vilas Bank's legacy while enhancing service capability through DBS’s strong backing, widening its reach and stability. This transformation highlights India's banking sector's adaptability and the vital role of regulatory measures in sustaining robustness. The merger affirms a continual commitment to serving customers and stakeholders, fueled by the banking industry's ongoing evolution.

Available on both IOS and AndroidTry Pluto Money Today 👇
Author
Team Pluto
Have a question?
Digital GoldInvest in 24K Gold with Zero making ChargesLearn More
Digital SilverInvest in silver with Zero making ChargesLearn More
Pluto FixedEarn from 11% to 14% Returns annually in a fixed lock-in periodLearn More