Banking Saga Continue - LVB to DBS

Another  bank has failed, the third collapse of a major deposit-taking institution in 15 months; 5th since last 30 months and the first since the onset of the coronavirus pandemic. But instead of allowing a zombie lender to linger after a half-baked rescue, the central bank has wisely decided to put Lakshmi Vilas Bank Ltd. out of its misery. Better still, it’s called upon a foreign institution to take over the assets and liabilities. That should stoke interest of other global banks.

https://www.businessinsider.in/finance/banks/news/lakshmi-vilas-bank-is-the-fifth-financial-firm-after-ilfs-dhfl-yes-bank-and-pmc-bank-to-collapse-in-india/slidelist/79286096.cms#slideid=79286133

The single largest promoter of Lakshmi Vilas Bank Limited K.R. Pradeep has said that Singapore’s DBS group was keen to acquire 50% stake in LVB for a high valuation in 2018 but the Reserve Bank did not allow the deal to go through.

He was Vijay Mallyas Ca; does in and out transactions with lots of  Cooperative Banks in remote places in Andhra

https://www.deccanherald.com/.../31-bengaluru-investors...

31 Bengaluru investors figure in Panama Papers list

One last thing on the entire LVB, Govt needs to order an fair investigation on All Directors involved on decisions of major Transactions.. lots irregularities is open for everyone to see.. who is stopping it, only god knows.. wish it happens in the in the interest of genuine investor. 

As per the of amalgamation of LVB with DBS India,

•𝘛𝘩𝘦 𝘦𝘯𝘵𝘪𝘳𝘦 𝘱𝘢𝘪𝘥-𝘶𝘱 𝘴𝘩𝘢r𝘦 𝘤𝘢𝘱𝘪𝘵𝘢𝘭 𝘸𝘪𝘭𝘭 𝘣𝘦 𝘸𝘳𝘪𝘵𝘵𝘦𝘯 𝘰𝘧𝘧

•The shareholders of LVB will also not 𝘩ave any say in the amalgamation decision in the general body meeting

Sad part is those responsible for it have easy way out to get out of this and now news is Big Corporate Business Houses will be allowed in Banking space. Who will answer significant questions like:

•How to stop corporates running under huge debt from dipping into their own "bank" for funds? 

•Have we learnt anything from the DHFL, Yes Bank, LVB, PMC episodes? 

It's happening in front of our eyes.. but we are unable to do much.. Greed the root of all of this? PSB's down to 12. Employees worried about the future.  Customers worried about their funds.        

India will have to reform its banking sector the arduous way by addressing structural problems and not through “shortcuts” like opening up the sectors for corporates, former Reserve Bank of India governor Raghuram Rajan has said. “The problem sometimes lies in thinking that there are shortcuts to the longer-run issue of how do I improve credit growth, credit information, and credit recovery,”  According to him, unless we improve the overall governance, handing the banks to large industrial houses and privatizing them would be playing with fire. 

Given the number of accidents in the past couple of years, anything done to the banking industry, without strengthening RBI's supervisory and enforcement capability, would be dangerous. 

Letter from  Subramanian Swami on fraudulent merger