Question

In November, 2020 Union Cabinet gave its nod to merge which two banks?

• A. Lakshmi Vilas Bank with Allahabad Bank
• B. DBS Bank of India with Allahabad Bank
• C. Lakshmi Vilas Bank with DBS Bank of India
• D. DBS Bank of India with Karur Vysya Bank

Answer 1

The Correct Option is C

In November 2020, the Union Cabinet of India approved the amalgamation of Lakshmi Vilas Bank with DBS Bank of India. This decision was taken to provide stability to Lakshmi Vilas Bank, which was facing financial difficulties and operational challenges. By merging with DBS Bank of India, a subsidiary of DBS Group headquartered in Singapore, Lakshmi Vilas Bank was given access to strong capital support and better management capability, which was crucial for stabilizing its operations and ensuring the safety of its depositors and stakeholders.

Let's analyze the options given in the question:

1. Lakshmi Vilas Bank with Allahabad Bank: This is incorrect because Allahabad Bank merged with Indian Bank earlier in April 2020 and was not related to Lakshmi Vilas Bank.
2. DBS Bank of India with Allahabad Bank: This option is incorrect as there was no merger between DBS Bank of India and Allahabad Bank.
3. Lakshmi Vilas Bank with DBS Bank of India: This is the correct answer, as official recognition for this merger was granted by the Reserve Bank of India and the Central Government in November 2020.
4. DBS Bank of India with Karur Vysya Bank: This is not a factual statement as no such merger took place.

The correct answer is Lakshmi Vilas Bank with DBS Bank of India.