• CPI National Council

Do not hand over Lakshmi Vilas Bank to a Foreign Bank

CPI General Secretary D RAJA has issued the following statement today (on November 23, 2020):

Lakshmi Vilas Bank, the 94-years-old Tamil Nadu-based private bank has been making losses for the past few years due to mismanagement and bad loans given to known defaulters like Jet Airways, Religare, Cox and Kings, Coffee Day, Nirav Modi, Reliance Housing Finance, etc. Instead of taking action on the erring top officials, the Reserve Bank has announced that the bank will be handed over to DBS Bank of Singapore.

In the larger interest of the depositors and customers of the bank as well as the retail investors of the bank, it is desirable to merge the bank with a public sector bank as has been done in many cases in the past. Handing over the bank to foreign bank smacks of the agenda of the government to appease foreign investors. Further, within an hour of declaring moratorium of LVB, RBI has come out with the proposal to merge the bank with DBS Bank, which clearly indicates that it was already decided by the RBI. Why such a hurry is not clear to anyone. Government should thoroughly enquire into the matter and stop the handing over of LVB to DBS Bank.

The Prime Minister and the Finance Minister keep declaring loudly from the roof top about local-vocal and about Atmanirbhar. But in reality this is what they do. The working people and the peasantry are fighting against these anti-national disastrous policies of Modi government. There will be a general strike on November 26, 2020 and also farmer’s agitation.

The CPI appeals to all sections of people to extend full solidarity and support to make these struggles a big success.



Office Secretary

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