The beleaguered private sector bank Lakshmi Vilas Bank which was amalgamated with DBS Bank India earlier last month said on Wednesday that its equity shares will be delisted from bourses with effect from December 18,2020 pursuant to a gazette notification dated November 25, issued by Department of Financial Services, Ministry of Finance.
Worth mentioning here that the scheme of amalgamation of LVB and DBS Bank was carried out under the special powers of the Government of India and RBI under Section 45 of the Banking Regulation Act, 1949, India. On November 25, the cabinet approved the scheme and it came into effect on November 27.
The decision to merge the two banks was taken in order to provide immediate stability to Lakshmi Vilas Bank and was in the best interest of its depositors. Later, both the bondholders and shareholders of the bank moved court against the amalgamation.