RBI rejects proposed merger of Indiabulls and Lakshmi Vilas Bank

The Reserve Bank of India (RBI) logo is displayed inside the central bank building in Mumbai
The Reserve Financial institution of India (RBI) emblem is displayed contained in the central financial institution constructing in Mumbai | Karen Dias | Bloomberg

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New Delhi: The Reserve Financial institution on Wednesday rejected the proposed merger of Lakshmi Vilas Financial institution 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 financial institution stated in a inventory alternate submitting.

The financial institution had sought approval from the Reserve Financial institution of India (RBI) on Might 7, 2019.

Final month, the financial institution was positioned underneath Immediate Corrective Motion (PCA) as a consequence of excessive degree of dangerous loans, lack of enough capital to handle dangers and unfavorable return on belongings for 2 consecutive years.

Additionally learn: We’ve turned the nook on NBFC & actual property crises, IndusInd Financial institution CEO Sobti says

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