Tag: DBS

Piyush Gupta, CEO, DBS, BFSI News, ET BFSI

Banking & Finance

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Digital currencies and tokenisation of assets are a reality and may be a dominant factor in the future, but that doesn’t necessarily mean that Bitcoin could replace fiat currency as a medium of exchange, said Piyush Gupta, CEO of DBS. “We launched the first bank-sponsored digital exchange in December, which lets you tokenise assets and securities,” said Gupta, ET’s Global Indian of the Year.

“So by our action we are creating capabilities for crypto, digital currencies and tokenisation for the future. But Bitcoin as a replacement for money is still challenging. Money is a medium of exchange, a unit of account and store of value.’’ The world is divided on the future of cryptocurrencies with regulators like the Reserve Bank of India (RBI) opposing them as a medium of exchange, while billionaire entrepreneurs like Elon Musk are backing them.

While cryptocurrencies have become a craze, the volatility of Bitcoin has made administrations nervous.

“Bitcoin is not a good medium of exchange because even though Elon Musk says he will take it for Tesla, it is very hard to do transactions because you can only do nine transactions per second while Visa and Mastercard can do hundreds of thousands,” said Gupta.

Gupta of DBS, which became the first international bank to acquire a domestic, troubled lender in recent memory, said that Lakshmi Vilas Bank fits into our strategy. He visualised the growth path a few years ago through the subsidiarisation of DBS in India to gain equal footing with domestic banks. “We were mentally prepared and had done some homework around a range of possibilities and that allowed us to respond very quickly,” he said. DBS India took over Lakshmi Vilas Bank last year



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LVB-DBS merger: Plea in Delhi HC on LVB share capital write-off

Banking & Finance

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A shareholder in Lakshmi Vilas Bank has filed a Writ Petition in the Delhi High Court challenging its amalgamation with DBS Bank India.

A clause in the scheme seeks to write off the entire share capital of the troubled lender

The petition, filed by one Sudhir Kathpalia, naming also the Union of India, Reserve Bank of India and DBS as respondents, contended that the merger would leave investors and the Centre and the RBI have failed to protect investors’ rights.

Accordingly, it has sought quashing of clause 7(i) in the merger scheme, which provides for the write off of LVB’s share capital states.

The petition which was listed for January 13 before a bench of Chief Justice DN Patel and Justice Jyoti Singh has been adjourned to February 19 after the Bench was informed that the RBI has moved a plea in the Supreme Court for transfer of all pleas against the amalgamation scheme to the Bombay High Court.

Kathpalia, a lawyer, holds 20,000 shares of LVB.

The petition contended that the scheme of amalgamation was “irregular, arbitrary, irrational, unreasonable, illegal and thus, void”, and the respondent could have demanded protection for shareholders money by asking DBS Bank India to give the shares equivalent to the value of shares last traded on stock exchange post amalgamation.

“The Petitioner wants to categorically state that it is not against the scheme of amalgamation per se but the manner in which investors’ money is being written off.” The amalgamation of the banks was approved by the RBI on November 25, 2020 and the merger took place on November 27.

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