DBS Bank India was extended assistance by The Reserve Bank of India (RBI) of about 7,000 crore to meet the short-term funding needs of the bank. This comes after the acquisition and merger of Laxmi Vilas Bank (LVB) with DBS Bank India back in November, Economic Times reported
The possible cause for this could be the shift from short to long-term deposits by the customers of LVB. This might have led to DBS asking help from the RBI. The funds collected is most likely to be used to handle the mismatch in the assets and liabilities of LVB.
The need for fundraising may have been because of the acquisition and not because of the financial condition of DBS Bank, according to Economic Times.
