Lakshmi Vilas Bank is the fifth financial firm to collapse in India within the last 30 months
Prabhjote Gill
Depositors of PMC bank protesting the moratorium and lack of access to their savings BCCL
- Lakshmi Vilas Bank (LVB) is the fifth Indian financial firm to collapse over a span of 30 months after IL&FS, DHFL, Yes Bank, and PMC Bank.
- The Reserve Bank of India (RBI) has placed the bank under a moratorium for the next one month, with withdrawals capped at ₹25,000 crore as it mulls over LVB’s merger with DBS Bank India.
- Here’s a quick look at what went wrong, how the RBI stepped in, and where these banks currently stand.
The downfall of Lakshmi Vilas Bank (LVB) was in the making for over a year, and it’s only the most recent of Indian banks to fail in the last 30 months. Over the last two years, India has seen other legacy names like IL&FS, DHFL, Yes Bank and PMC Bank go under.
The legacy 93-year old financial institution was placed under moratorium by the Reserve Bank of India (RBI) on Tuesday, November 17; and it will be merged with DBS Bank India in the coming days. While many have lauded the RBI’s quick turnaround, there are others who question why the RBI didn’t step in even sooner or why other banks weren’t considered for a merger.
Here’s how the LVB crisis stacks up against other banks that have collapsed over the last two years:
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