The Reserve Bank of India (RBI) has rejected the proposed merger of Lakshmi Vilas Bank Limited (LVB) with Indiabulls Housing Finance Limited (IBH), the bank said in a regulatory filing on October 9.
"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.
On May 7, Lakshmi Vilas Bank had sought voluntary amalgamation with IBHL and ICCL.
The RBI had initiated Prompt Corrective Action (PCA) against Lakshmi Vilas Bank on September 27 following high non-performing assets (NPAs), insufficient capital adequacy levels, negative Return on Assets and high leverage.
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