MUMBAI: The Madras HC has asked RBI to carry out a valuation of shares and assets of DBS Bank India and Lakshmi Vilas Bank as on the date before their amalgamation in Nov 2020. RBI has been asked to take a fresh decision on reduction of the value of shares and writing off the tier-2 bonds, based on the fresh valuation, within four months.
The order was issued in a suit filed by the bondholders and minority shareholders of LVB against the write-down of their investment, following a moratorium on the bank and before the amalgamation of LVB with DBS.
In its order the court said that it was not interfering with the decision to amalgamate LVB with DBS. The order said that several of the investors in these bonds are akin to the depositors, and a review of the decision should be done “keeping in mind the grievances of the shareholders and the bondholders and the hardship faced on account of the scheme of compulsory amalgamation and amelioration of the same to the extent possible”.
