Madras HC orders RBI to conduct comprehensive asset valuations for DBS and Lakshmi Vilas Bank

DBS and Lakshmi Vilas Bank: Integration of private sector DBS Bank India and Lakshmi Vilas Bank has been completed. Now the Madras High Court has ordered the Reserve Bank of India (RBI) to evaluate the assets of these two banks before the merger. Through this valuation, it can be ascertained what impact the merger has had on the stakeholders. RBI will complete the valuation of shares and assets of these two banks before November 2020 and submit the details to the court within four months.

Order given on the problems of shareholders and bondholders

On the orders of the court, RBI will give its decision on the fall in share value and write off of Tier 2 bonds. Madras High Court has given this order on a petition by bond holders and minority shareholders of Lakshmi Vilas Bank. He had filed a petition against the write off of his investment. This situation had arisen due to the ban imposed on LVB before its merger with DBS Bank India. However, the court also made it clear that this order will not have any impact on the merger. This is just an attempt to address the concerns of investors. RBI will also try to solve the problems of shareholders and bondholders.

Cases were transferred by various High Courts and Supreme Court.

Many cases were filed after the merger of DBS Bank India and Lakshmi Vilas Bank. All these cases were transferred to Madras High Court by various High Courts and Supreme Court of the country in the year 2022. Now this order of Madras High Court is being considered as an attempt to solve the problems of the stakeholders affected by the merger. A transparent and fair valuation by RBI will ascertain whether justice was done to all stakeholders during the merger.

read this also

Multibagger Stock: This small company riding on the chariot of profit gave 2000 percent return in one year