By now, you probably have heard about India’s central bank proposing a scheme to merge the ailing Lakshmi Vilas Bank (LVB) with DBS Bank.
Many investors have been crying foul about the bad deal etc. On the analysts side, there have been a mixed reaction as shown from the Biz Times article here.
But on an objective note, here’s 4 key things investors need to know about the proposed DBS – Lakshmi Vilas Bank (LVB) merger (there are plenty of snippets from various sources below and you can refer to the url links posted at the end).
1) What led to DBS – Lakshmi Vilas Bank (LVB) merger?
This is believed to be the first time that the India central bank has turned to a foreign lender to rescue a failing local bank, in a move that took the industry by surprise.