Laxmi Vilas Bank placed under moratorium. This means they're going to mount a rescue of some sort. It's a small bank but we expect
a) Tier 1/2 bond writedowns
b) Equity capital will need to be infused for a rescue

They have Tier 1 + 2 capital of 148 cr. (march 2020) which would have dwindled further. Even a full write down of Tier 2 bonds - roughly 270 cr. - will not be enough. The bank needs 1300 cr. of capital, at the very least.

Ok, update: RBI does a full merger with DBS Bank India. https://rbidocs.rbi.org.in/rdocs/content/pdfs/DraftS17112020.pdf

Shareholders wiped out (Shares go to 0)
All depositors will be paid in full, after the moratorium.

Fixed deposits: All FDs will be reset to DBS rates after the merger. Meaning if you thought you're getting 10% or such, that's only till the date of the merger - after that, it could be 4% (depends on DBS). But you can withdraw, if you like, after that.

Just to note: Lakshmi Vilas Bank will be merged with DBS. Shareholders are wiped out. All deposits are fully protected (after the end of a moratorium period).

Looks like the Tier 2 bonds are protected too. Which would be a relief for some.

This is officially the fastest resolution by RBI/Govt ever, post a moratorium. Less than 30 minutes, so obviously it was well planned.

Indiabulls housing finance (IBULHSGFIN) owns 4.99% of the bank's shares - that will go to zero. Likely it's already been written off for the most part, but the rest of the hit will go on its books for the Dec quarter.

DO NOT BUY SHARES OF LVB. THIS SHARE IS GOING TO ZERO.

People will not listen, I know. Even in Upper caps. BUT COME ON.

Thats LAKSHVILAS as a ticker. Don't buy it. You'll lose all your money. If that is your objective, I know better places to donate.