LVB Full Form

LVB stands for Lakshmi Vilas Bank. It is an Indian private-sector bank founded in 1926. headquarters of LVB is in Chennai, Tamil Nadu. It provides a range of banking and financial services to its customers, including personal banking, corporate banking, SME banking, and wholesale banking. In November 2020, the Reserve Bank of India (RBI) placed LVB under a one-month moratorium and announced that it would be merged with DBS Bank India Limited. In November 2020 the merger was completed

History of LVB

Lakshmi Vilas Bank (LVB) is an Indian private sector bank founded in 1926 by a group of seven businessmen in Karur, Tamil Nadu. The bank was initially known as "Lakshmi Vilas Bank Ltd." but was later renamed as "Lakshmi Vilas Bank" in 1933. The bank started as a small-scale finance company and gradually grew into a full-fledged bank. In the year 1958, the bank was nationalized and became a Scheduled Commercial Bank. The bank operates more than 500 branches and ATMs across India, it also has a representative office in Dubai. In the year 2014, the bank's board of directors decided to raise capital through private equity, and the bank got listed on the National Stock Exchange and the Bombay Stock Exchange. In November 2020, the Reserve Bank of India (RBI) placed Lakshmi Vilas Bank under a one-month moratorium and announced that it would be merged with DBS Bank India Limited, a subsidiary of Singapore-based DBS Bank. the merger was completed in November 2020.

Moratorium on LVB

A moratorium is a temporary restriction or suspension of certain rights or activities. In the case of Lakshmi Vilas Bank (LVB), a moratorium was placed on the bank by the Reserve Bank of India (RBI) in November 2020.

The RBI had placed LVB under a one-month moratorium, which means that the bank's depositors were not allowed to withdraw more than Rs 25,000 during this period. The RBI also appointed an administrator to manage the bank's affairs during the moratorium. The decision to place LVB under moratorium was taken due to the bank's weak financial position, which was characterized by high levels of non-performing assets, inadequate capital, and a negative return on ass