RBI Rejects Proposed Merger of Lakshmi Vilas Bank with Indiabulls Housing Finance
The banks had sought approval from the Reserve Bank of India (RBI) on May 7, 2019.
File photo of lakshmi Vilas Bank. (Twitter/
New Delhi: The Reserve Bank on Wednesday rejected the proposed merger of Lakshmi Vilas Bank with Indiabulls Housing Finance.
“…this is to inform that RBI vide their letter dated October 9, 2019, informed that the application for voluntary amalgamation of lndiabulls Housing Finance Limited and lndiabulls Commercial Credit Limited with the Lakshmi Vilas Bank (LVB) cannot be approved,” the bank said in a stock exchange filing.
The bank had sought approval from the Reserve Bank of India (RBI) on May 7, 2019.
Last month, the bank was placed under Prompt Corrective Action (PCA) due to high level of bad loans, lack of sufficient capital to manage risks and negative return on assets for two consecutive years.
Get the best of News18 delivered to your inbox – subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, Telegram, TikTok and on YouTube, and stay in the know with what’s happening in the world around you – in real time.
Source: News18