RBI rejects proposed merger of Lakshmi Vilas Bank with Indiabulls Housing Finance
Lakshmi Vilas Bank Ltd said on Wednesday the central bank has not approved its merger with Indiabulls Housing Finance Ltd.
Ending months of uncertainty around the proposed merger, the Reserve Bank of India (RBI) on Wednesday said in a stock exchange filing, "This is to inform that RBI vide their letter dated October 09, 2019, informed that the application for voluntary amalgamation of lndiabulls Housing Finance Ltd and lndiabulls Commercial Credit Ltd with Lakshmi Vilas Bank Ltd cannot be approved."
In April, private sector lender Lakshmi Vilas Bank Ltd had informed exchanges that its board has approved a merger with mortgage financier Indiabulls Housing Finance Ltd in an all stock deal.
Both Indiabulls and its target Lakshmi Vilas Bank Ltd. were seeking to increase profitability and bolster capital as the crisis in the shadow banking sector drags on.