
LVB crisis: Same story, different characters
The 30-day moratorium on Lakshmi Vilas Bank is similar to YES Bank, protecting depositors and employees, but retail shareholders would be worst hit if amalgamation with DBS Bank India goes through.
The 30-day moratorium on Lakshmi Vilas Bank is similar to YES Bank, protecting depositors and employees, but retail shareholders would be worst hit if amalgamation with DBS Bank India goes through.
Prashant Kumar, the bank’s administrator, echoed the words of RBI governor Shaktikanta Das that there was no cause for worry about deposits as the moratorium on withdrawals is set to end on March 18.
The private lender’s profit fell 9% over the previous quarter. Its provisions grew by 40.7% and 14.3% on quarterly and annual basis, respectively.
Worst quarterly performance in 20 quarters; net profit plunges to ₹113.8 crore from ₹1,260.36 crore a year ago due to higher provisioning.