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Moody's Investors Service on Wednesday said Singapore's DBS Bank will strengthen its India business following merger with troubled Lakshmi Vilas Bank. Banking regulator RBI on Tuesday announced a draft scheme to amalgamate the troubled Lakshmi Vilas Bank (LVB) into DBS Bank India, which is fully owned by DBS Bank Ltd.

"The merger will strengthen DBS' business position in India by adding new retail and small and medium sized customers. We estimate that DBS India's customer deposits and ..

"We estimate that the merger will increase DBS' net loans in India to around 1.5 per cent of group loans, from 0.9 per cent as of June 30, 2020. DBS' net loan exposure in India will remain small and will not alter the group's credit profile," it added.

The acquisition will help DBS complement traditional physical branch banking with its digital strategy in India.

Moody's said India and Indonesia are DBS' core foreign markets where it is actively growing its digital banking  ..