New Delhi: Lakshmi Bilas Bank customers’ money is completely safe, said TN Manoharan, administrator who has appointed the Reserve Bank of India to manage the bank. Lakshmi Bilas Bank will be merged with DBS7 Bank India within the time limit set by the Reserve Bank, he asserted. Lakshmi Bilas Bank has 543 branches and 4,100 employees work for the bank. In September 2014, the bank was brought under the Reserve Bank of India’s Strong Prompt Corrective Action (PCA). For the past two years, the bank has been going through a severe financial crisis. The Reserve Bank of India yesterday took over the board of Laxmi Bilas Bank, a financially weakened private sector bank, and appointed TN Manoharan, former non-executive chairman of Canara Bank, as its administrator. In addition, a moratorium has been imposed on banks, with customers being told that they can withdraw a maximum of Rs 25,000 per account. Lakshmi Bilas Bank is scheduled to merge with DBS9 Bank India by December 16. Manoharan said the process would be completed ahead of schedule. Now the bank’s business is stalled. The administrator is urging the bank to open ATMs and branches as soon as possible. After merging with DBS9 Bank India, all employees of Lakshmi Bilas Bank will be part of DBS7. Promising confidence in customers, he said the bank has a sufficient amount of cash. Priority is given to adding as much money as customers want to withdraw. He is in touch with the Reserve Bank to ensure that there is no shortage of funds. The bank has Rs 20,000 crore in deposits and Rs 18,000 crore in advance.
