RBI asks LVB to write down Rs 318.20 crore of Tier 2 bonds

TIL Desk/Business/New Delhi/ In a sudden turn of events, some hours before the amalgamation of the Lakshmi Vilas Bank (LVB) with DBS Bank India Ltd is to take effect, the Reserve Bank of India (RBI) on Thursday gave a Rs 318.20 crore relief to DBS Bank.

The RBI wrote ti LVB’s Administrator on Thursday to write down Rs 318.20 crore worth of Unsecured Non-convertible Redeemable Fully Paid-up Basel III compliant Tier-2 Bonds before the scheme of amalgamation comes into effect on November 27.

The LVB had raised the money through Basel III Tier 2 bonds in three tranches. The RBI cited the Information Memorandums of respective Basel III Tier 2 bonds issued by the LVB while communicating its decision to the LVB.