Mumbai: The unprecedented takeover of a private Indian bank by a foreign competitor signals that the nation’s banking sector is opening up, Finance Minister Nirmala Sitharaman said.
Sitharaman lauded the Reserve Bank of India’s efforts in steering the bailout of Lakshmi Vilas Bank Ltd. by allowing a local unit of Singapore’s DBS Group Holdings Ltd. to buy the failed lender.
“That only sends the right message that Indian banking sector is being opened up,” Sitharaman said Tuesday in a Bloomberg Television interview.
Lakshmi Vilas is one of two banks to be rescued this year as the nation’s financial industry reels from one disaster to the next. A shadow banking crisis in 2018 and now the pandemic-fueled recession have hurt banks’ asset quality and capital, hampering their ability to lend.
To preserve stability of the financial system, the RBI took the rare step of arranging the bailout of Yes Bank Ltd. by state and private-sector lenders in March, followed by DBS’s deal to buy Lakshmi Vilas last month.
Prime Minister Narendra Modi’s government will also go ahead with privatizing a couple of state-run banks that have received cabinet approval, Sitharaman said, without elaborating.
“We shall look forward to having more interest in private-sector banking that sends a message that in fact we are open for a healthy banking system,” she said. –Bloomberg
Also read: We will spend money to help economy, not worry about fiscal deficit – Nirmala Sitharaman
The life savings of small middle class, senior citizens investments in LVB in bonds were simply nullified with a stroke of a pen. With out giving a thought to the sufferings of these small time investors, bonds in LVB were written off. Whom you are benefitting? A foreign bank.. Who are responsible for the downfall of LVB 1. the incompetent management 2. RBI 3. GOI MF. For their faults, why the poor investors of the bonds suffer.
IN THIS COUNTRY “SAVING” IS A SIN.
ENJOY LIFE WITH BOOZE, DRUGS, LUXURIES .
It Seems Government want us to learn how to cheat people for own benefits.
It’s looking like encouraging people to make fraud by using laws.
Hopeless fm
CHEATING WITH SMALL SHARE HOLDERS. ALL SMALL PRIVATE BANK SHARE HOLDERS SHOULD EXIT FROM THEM.
Madam finance minister, I am a retail investor, lost all my money on LVB shares. How was the decision made that share holders investment will be washed out? Was the bank having 0 assets? Then why another bank should take over? No sentiments for retail investors money??
You ate bondholders money here also , u shd have given the bank to indiabulls , shareholders and bind holders wud bit have suffered, also cliz capital deal was goin on then why did u out DBS ……and made everyone suffred
Immature opinion without understanding the feelings of thousands of genuine share holders of Lakshmivilas bank (of course in the name of Goddess Mahalakshmi). I hope that a factual analysis of the amalgamation and valuation of the assets of the Lakshmivilas bank would be done by the courts to get justice to the share holders.
Just inform what you have dine for co operative banks like Raghavendra co operative bank, where the things were messed up by Registrar of co operative societies who handled the affairs of the bank post scam. Almost for 9 months they did not do anything and cooly allowed criminals to hide and what not. Very clear by handing over trouble ridden bank in the hands of Bandicoats.
The local MP told blatant lies to senior citizens that you will be taking care of them
Total lot of loots, liers .
Shere holders status ?
Banking sector can be opened but not at the cost of the retail poor and innocent shareholders. The same entity was prepared to buy LVB shares @ 100 rupees per share butbthe same entity has received this retail bank for nothing