• About us
    • Data Analyst Team
    • Magazines Sections
    • Editorial Team
  • Advertise with us!
  • Business review
  • Guest writers
    • Guest Contribution
  • Subscription
  • Career
  • Contact us
Tuesday, July 5, 2022
Business Connect | Best Business magazine In India
Upcoming Event
  • News
    • All
    • Blog
    Amarnath Yatra 2022 temporarily suspended from the Pahalgam route amid bad weather

    Amarnath Yatra 2022 temporarily suspended from the Pahalgam route amid bad weather

    Meet the Stunning Sini Shetty: Miss India 2022

    Meet the Stunning Sini Shetty: Miss India 2022

    British Army's social media accounts restored after hack to promote crypto scams

    British Army’s social media accounts restored after hack to promote crypto scams

    Sudhir Chaudhary resigns as Zee News CEO to launch his own ‘media enterprise’

    Sudhir Chaudhary resigns as Zee News CEO to launch his own ‘media enterprise’

    This Chinese company to make a grand entry in India; aims to launch five motorcycles

    This Chinese company to make a grand entry in India; aims to launch five motorcycles

    Jagannath Rath Yatra 2022 updates: Million devotees throng Odisha’s Puri amid tight security

    Jagannath Rath Yatra 2022 updates: Million devotees throng Odisha’s Puri amid tight security

    8 killed, 50 people missing after landslide hits Army camp in Manipur

    14 killed, 50 people missing after landslide hits Army camp in Manipur

    PAN Aadhaar linking last date Today: Double penalty from July 1 if avoided

    PAN Aadhaar linking last date Today: Double penalty from July 1 if avoided

    Beginning of new era: Akash Ambani replaces father Mukesh as Reliance Jio chairman

    Beginning of new era: Akash Ambani replaces father Mukesh as Reliance Jio chairman

  • Magazine
    • 2022-21 Magazines
  • Lounge Interviews
  • Press Release
    • PR Enquiry
  • Blogs
  • Success Stories
  • Testimonials
  • Interior Design
  • Launchpad
  • BCM TV
No Result
View All Result
  • News
    • All
    • Blog
    Amarnath Yatra 2022 temporarily suspended from the Pahalgam route amid bad weather

    Amarnath Yatra 2022 temporarily suspended from the Pahalgam route amid bad weather

    Meet the Stunning Sini Shetty: Miss India 2022

    Meet the Stunning Sini Shetty: Miss India 2022

    British Army's social media accounts restored after hack to promote crypto scams

    British Army’s social media accounts restored after hack to promote crypto scams

    Sudhir Chaudhary resigns as Zee News CEO to launch his own ‘media enterprise’

    Sudhir Chaudhary resigns as Zee News CEO to launch his own ‘media enterprise’

    This Chinese company to make a grand entry in India; aims to launch five motorcycles

    This Chinese company to make a grand entry in India; aims to launch five motorcycles

    Jagannath Rath Yatra 2022 updates: Million devotees throng Odisha’s Puri amid tight security

    Jagannath Rath Yatra 2022 updates: Million devotees throng Odisha’s Puri amid tight security

    8 killed, 50 people missing after landslide hits Army camp in Manipur

    14 killed, 50 people missing after landslide hits Army camp in Manipur

    PAN Aadhaar linking last date Today: Double penalty from July 1 if avoided

    PAN Aadhaar linking last date Today: Double penalty from July 1 if avoided

    Beginning of new era: Akash Ambani replaces father Mukesh as Reliance Jio chairman

    Beginning of new era: Akash Ambani replaces father Mukesh as Reliance Jio chairman

  • Magazine
    • 2022-21 Magazines
  • Lounge Interviews
  • Press Release
    • PR Enquiry
  • Blogs
  • Success Stories
  • Testimonials
  • Interior Design
  • Launchpad
  • BCM TV
No Result
View All Result
Business Connect | Best Business magazine In India
No Result
View All Result
Home News

The merger of LVB-DBS May Set Precedent for the RBI

admin by admin
November 23, 2020
in News
The merger of LVB-DBS May Set Precedent for the RBI
Share on FacebookShare on Twitter

The merger of LVB-DBS May Set Precedent for the RBI

By: Ashwathy Nair

  • The merger would serve as a template for the RBI to rescue other struggling banks.
  • Rules by the RBI, limit foreign banks from dominating the Indian banking system.
  • Unless the banks have a pan-India footprint, it cannot compete with the likes of ICICI Bank and HDFC Bank.

The merger that is being proposed of capital-starved (LVB) Lakshmi Vilas Bank with the DBS Bank, which is a local arm of Singapore could serve as an example for the (RBI) Reserve Bank of India in order to save other banks that are struggling.

Allowing the acquisition of a foreign bank and a weak local rival would not only open up more options for the banking regulator as it pursues well-capitalized entities with deep pockets but also the exclusively owned subsidiary structure of the Indian operations builds a barrier among the local entity from being affected by adverse progress at the parent organization.

In 2014, after foreign banks were allowed to set up a wholly-owned subsidiary by the central bank, the first foreign bank that received a banking licence was DBS. By allowing the banks to open branches anywhere in the country, the subsidiary structure brings the lender on par with local banks.

While foreign banks are being encouraged by the Reserve Bank of India to set up fully-owned subsidiaries in India, there is no compulsion for them to create one.

The managing director and chief executive officer of the State Bank of Mauritius, which is the second foreign bank to create a wholly-owned unit in India, Sidharth Rath stated that “The acquisition of an Indian bank is a smart strategy. For the regulator, clients and the acquiring bank, it’s a win-win scenario. We’re currently a start-up bank, looking to expand on the strength of our book. As of now, we are not looking at inorganic possibilities. However, we will look at it in the future”.

It was stated that the rules of the Reserve Bank of India limit foreign banks from dominating the Indian banking system as there is a threshold beyond which it cannot be operated by them.

As per the rules by World Trade Organization, licences might be denied to new foreign banks if their share of assets in India, both on and off the balance sheet, reaches 15 per cent of the total assets of the banking system.

The challenge that is being faced by foreign banks is the integration between the two business cultures after an acquisition.

The other obstacle faced by international banks is the integration between the two business cultures after an acquisition. Compared to Indian banks, which have a more conventional client-focused approach, foreign banks and employees are trained in digital skills and have good underwriting processes.

Previous Post

Gainwell Commosales Private Limited: Powering India’s engine of inclusive growth

Next Post

A Propelling Routine – Empowering Healthy Lifestyle in Entrepreneur

Related Posts

Amarnath Yatra 2022 temporarily suspended from the Pahalgam route amid bad weather
News

Amarnath Yatra 2022 temporarily suspended from the Pahalgam route amid bad weather

by admin
July 5, 2022
0

Amarnath Yatra 2022 temporarily suspended from the Pahalgam route amid bad weather By Sanjay Maurya News Highlights In south Kashmir...

Meet the Stunning Sini Shetty: Miss India 2022
News

Meet the Stunning Sini Shetty: Miss India 2022

by admin
July 4, 2022
0

Meet the Stunning Sini Shetty: Miss India 2022 Miss India or Femina Miss India is India’s national beauty pageant that...

British Army's social media accounts restored after hack to promote crypto scams

British Army’s social media accounts restored after hack to promote crypto scams

July 4, 2022
Sudhir Chaudhary resigns as Zee News CEO to launch his own ‘media enterprise’

Sudhir Chaudhary resigns as Zee News CEO to launch his own ‘media enterprise’

July 4, 2022
This Chinese company to make a grand entry in India; aims to launch five motorcycles

This Chinese company to make a grand entry in India; aims to launch five motorcycles

July 4, 2022
Jagannath Rath Yatra 2022 updates: Million devotees throng Odisha’s Puri amid tight security

Jagannath Rath Yatra 2022 updates: Million devotees throng Odisha’s Puri amid tight security

July 1, 2022
Next Post
A Propelling Routine – Empowering Healthy Lifestyle in Entrepreneur.

A Propelling Routine – Empowering Healthy Lifestyle in Entrepreneur

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Plugin Install : Widget Tab Post needs JNews - View Counter to be installed
  • Trending
  • Comments
  • Latest
Amarnath Yatra 2022 temporarily suspended from the Pahalgam route amid bad weather

Amarnath Yatra 2022 temporarily suspended from the Pahalgam route amid bad weather

July 5, 2022
e2eHiring

e2eHiring

July 5, 2022
Meet the Stunning Sini Shetty: Miss India 2022

Meet the Stunning Sini Shetty: Miss India 2022

July 4, 2022
British Army's social media accounts restored after hack to promote crypto scams

British Army’s social media accounts restored after hack to promote crypto scams

July 4, 2022

Recent News

Amarnath Yatra 2022 temporarily suspended from the Pahalgam route amid bad weather

Amarnath Yatra 2022 temporarily suspended from the Pahalgam route amid bad weather

July 5, 2022
e2eHiring

e2eHiring

July 5, 2022
Meet the Stunning Sini Shetty: Miss India 2022

Meet the Stunning Sini Shetty: Miss India 2022

July 4, 2022
British Army's social media accounts restored after hack to promote crypto scams

British Army’s social media accounts restored after hack to promote crypto scams

July 4, 2022

Recommended

Silverzone_Business Connect

Silverzone Foundation

May 31, 2019
IPL 2022 Match No. 7; LSG to face CSK: Playing11, pitch report, key stats, and more

IPL 2022 Match No. 7; LSG to face CSK: Playing11, pitch report, key stats, and more

March 31, 2022

Most Popular

Amarnath Yatra 2022 temporarily suspended from the Pahalgam route amid bad weather
News

Amarnath Yatra 2022 temporarily suspended from the Pahalgam route amid bad weather

July 5, 2022
e2eHiring
Press Release

e2eHiring

July 5, 2022
Meet the Stunning Sini Shetty: Miss India 2022
News

Meet the Stunning Sini Shetty: Miss India 2022

July 4, 2022

Business Connect is a business magazine whose name is derived from Business Community which connects entrepreneurs, executive officers and VCs. With a mission to have one of the highest readership figures of senior-level executives and investors in India, Business Connect brings its edition on monthly basis.

Follow Us

Contact Information

Address: 804, DDA 2, District Centre, Janakpuri West, New Delhi-110058

Phone Number: +91-11-41065208, 42636209

Mail: abhishek@businessconnectindia.in

Recent News

Amarnath Yatra 2022 temporarily suspended from the Pahalgam route amid bad weather

Amarnath Yatra 2022 temporarily suspended from the Pahalgam route amid bad weather

July 5, 2022
e2eHiring

e2eHiring

July 5, 2022
Meet the Stunning Sini Shetty: Miss India 2022

Meet the Stunning Sini Shetty: Miss India 2022

July 4, 2022

Request a call back

  • About us
  • Why us
  • Healthcare
  • Guest writers
  • Career
  • Contact us

© 2020 All Rights Reserved by Business Connect India

No Result
View All Result
  • News
  • Magazine
    • 2022-21 Magazines
  • Lounge Interviews
  • Press Release
    • PR Enquiry
  • Blogs
  • Success Stories
  • Testimonials
  • Interior Design
  • Launchpad
  • BCM TV

© 2020 All Rights Reserved by Business Connect India

Quick Call with Us

Our team will facilitate you with a call and we will understand your needs.

No thanks, I’m not interested!