InvestorQ : Why has Lakshmi Vilas Bank been placed under moratorium? Is it another case like Yes Bank?
Mary Joseph made post

Why has Lakshmi Vilas Bank been placed under moratorium? Is it another case like Yes Bank?

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Arusha Ray answered.
2 weeks ago
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You are right that Lakshmi Vilas Bank or LVB has been placed under a 30-day moratorium by the RBI in a decision taken on 17 November. The LVB board was been superseded by the RBI and withdrawals are capped at Rs.25,000 per depositor till further notice.

LVB witnessed consistent deterioration in its financial health and its key solvency ratios in the past few months. The crisis at LVB worsened after the Indiabulls deal fell through. T N Manoharan, formerly of Central Bank of India, has been appointed the administrator.

Unlike Yes Bank or PMC Bank, here the RBI has moved in quickly and also prepared a draft scheme for the amalgamation of LVB with DBS Bank of Singapore. The final touches to the rescue plan are expected in the next one month, when the moratorium will remain.

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