RBI to examine merger proposal of Indiabulls and Lakshmi Vilas Bank

By: |
Updated: April 7, 2019 4:54:56 PM

"It is also clarified that presence of additional directors nominated by the RBI on the Board of LVB (Lakshmi Vilas Bank) does not imply any approval of the RBI of the merger proposal", the central bank said in a statement on Saturday, adding that the directors have no view on the deal.

RBI, Indiabulls, Lakshmi Vilas Bank, merger of Indiabulls and Lakshmi Vilas Bank, ChennaiIt said it will examine the proposal upon receiving it from the parties in line with regulatory guidelines.

India’s central bank said it has not yet approved a merger proposal of private-sector lender Lakshmi Vilas Bank Ltd and Indiabulls Housing Finance Ltd . Responding to media speculation that the presence of two nominee directors of the Reserve Bank of India (RBI) on the board of Lakshmi Vilas Bank implies RBI’s indirect approval of the deal, the central bank said the deal does not have its approval at this stage.

“It is also clarified that presence of additional directors nominated by the RBI on the Board of LVB (Lakshmi Vilas Bank) does not imply any approval of the RBI of the merger proposal”, the central bank said in a statement on Saturday, adding that the directors have no view on the deal. It said it will examine the proposal upon receiving it from the parties in line with regulatory guidelines.

Also read: How OYO became India’s 3rd best company to work for in just 6 years

The companies had said in a filing on Friday that they will merge operations in a share-swap deal. Shareholders of the Chennai-based bank will get 0.14 share in Indiabulls for every share held in the lender, according to terms of the deal disclosed on Friday.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Next Stories
1Bank of India bids adieu; looks to sell insurance JV stake, boost kitty by Rs 1,105 crore
2Bank of India to sell 25.05% stake in life insurance joint venture
3SBI is geared to meet any additional demand for housing loans