By now, you probably have heard about India’s central bank proposing a scheme to merge the ailing Lakshmi Vilas Bank (LVB) with DBS Bank.
Many investors have been crying foul about the bad deal etc. On the analysts side, there have been a mixed reaction as shown from the Biz Times article here.
But on an objective note, here’s 4 key things investors need to know about the proposed DBS – Lakshmi Vilas Bank (LVB) merger (there are plenty of snippets from various sources below and you can refer to the url links posted at the end).
This post was originally posted here. The writer, James Yeo is a veteran community member and blogger on InvestingNote, with a username known as @Smallcapasia and has 913 followers.
1) What led to DBS – Lakshmi Vilas Bank (LVB) merger?
This is believed to be the first time that the India central bank has turned to a foreign lender to rescue a failing local bank, in a move that took the industry by surprise.
Lakshmi Vilas Bank has been struggling with financial decline and red ink for the past three years. It incurred a loss of around $150 million in the 12 months to March 31. Its net worth has also shrunk while unpaid loans have increased.
India’s central bank advised LVB in September last year to reduce bad assets and bring in new capital.
However, after many months of futile discussion talks and sensing that things are deteriorating, The central bank stepped in to bail them out.
RBI (Reserve Bank of India) then did the following on 17 Nov 2020:
How is OCBC faring this third quarter? Let’s find out.
This post was originally posted here. The writer, Lim Jun Yuan is a veteran community member and blogger on InvestingNote, with a username known as @ljunyuan and has 1433 followers.
Besides DBS (you can check out my summary of its latest Q3 and 9M FY2020 results here), Overseas-Chinese Banking Corporation or OCBC (SGX:O39) also provided its business updates for the third quarter as well as for the first 9 months of the financial year 2020 (ended 30 September 2020) early this morning before trading hours.
As a shareholder of the longest established bank in Singapore, I have studied the related documents and in this post, you will find a summary of the bank’s latest financial statistics, key financial ratios, along with my personal thoughts to share.
Along with DBS Group Holdings, United Overseas Bank (SGX:U11) also released its results for the second quarter and first half of the financial year 2020 ended 30 June 2020 yesterday morning before trading hours.
This post was originally posted here. The writer, Lim Jun Yuan is a veteran community member and blogger on InvestingNote, with username known as ljunyuan and has 1241 followers.
As a shareholder of the Singapore bank, I have studied its latest update in detail and in today’s post, I will be sharing with you the most important aspects to take note of, my personal thoughts (about the bank’s latest results), along with important information about the bank’s dividends (both cash and scrip) to take note of (especially if you are a shareholder of the bank)…
Key Financial Results (2Q FY2019 vs. 2Q FY2020, and 1H FY2019 vs. 1H FY2020)
In this section, we will be looking at the bank’s key financial results both on a quarter-on-quarter (q-o-q) as well as on a year-on-year (y-o-y) basis:
2Q FY2019 vs. 2Q FY2020:
– Net Interest
– Net Fee &
– Other Non-Interest Income (S$’bil)
At one look, you can conclude that on a q-o-q basis, it was a weaker one for the bank. …
A decade ago, the 2008 financial crisis wreaked havoc on global markets as well as the world. The financial crisis has sunk some banks and paralyzed markets, resulting in staggering losses for many people out there. It is also considered by many economists to have been the worst financial crisis since the Great Depression of the 1930s.
How did it all happen?
After 10 years, the causes and repercussions remain tricky to comprehend. What exactly set it into motion involves a whole series of complex questions with a number of interlocking answers.
Here is a quick infographic attempting to detail what caused the 2008 Financial Crisis:
It all began with the use of securitization. Securitization simply means the pooling of debt and then issuing assets based upon that debt.