DBS Bank India Limited agreed to acquire The Lakshmi Vilas Bank Limited (BSE:534690) on November 17, 2020. All the branches of the The Lakshmi Vilas Bank Ltd. will function as branches of DBS Bank India Ltd. Reserve Bank of India has appointed Shri TN Manoharan as Administrator for The Lakshmi Vilas Bank Limited. As of November 25, 2020, the Union Cabinet approved the transaction.

Government of India in the Ministry of Finance sanctioned the acquisition. As per the disclosure of November 26, 2020, Bombay High Court on Thursday rejected a prayer for ad-interim stay on this scheme in a plea filed by shareholders of Lakshmi Vilas Bank. The Court is refusing the interim relief sought by the petitioners to stay the amalgamation.

The petitions are placed for hearing on December 14, 2020. As per the terms of the amalgamation, the paid-up share capital and reserves and surplus, including the balances in the shares or securities premium account of The Lakshmi Vilas Bank would be written off. The amalgamation scheme was approved by the RBI on November 25, 2020.

The transaction is expected to close on November 27, 2020. The Honourable Supreme Court has also fixed the next date for hearing before the Madras High Court as April 25.