Even as Indiabulls Housing- Lakshmi Vilas Bank awaits RBI approval, the deal may prove to be value accretive for both the entities, say analysts. According to Motilal Oswal, the merger is a win-win deal for both Indiabulls Housing Finance and Lakshmi Vilas Bank. For Lakshmi Vilas Bank merger for every 100 shares, the shareholders will get 14 shares of Indiabulls Housing Finance. \u201cThis implies a 36% premium to the closing price of LVB as of 5th Apr\u201919 and ~63% premium to the last six months\u2019 average price. The scheme of arrangement would lead to a 10.5% dilution,\u201d said Motilal Oswal in the report. Due to the deal, Indiabulls Housing will get access to a banking platform, essentially the liability franchisee. This will also provide longevity to its lending business on a consistent basis, noted Motilal Oswal. The 90-year old lender Lakshmi Vilas Bank has struggled to make a mark in the currently growing banking industry resulting in lost market share. Further, the bank has been constrained for capital. The merged bank will therefore benefit from the efficiency of IHFL, which operates on a very low cost-to-income ratio of 12.7% (as on FY18) backed by a strong technology architecture, noted Motilal Oswal. Also read:\u00a0Does rise in cash prove that demonetisation failed? Here\u2019s what PM Modi has to say While the deal is a significant long-term positive for Indiabulls Housing, there will be some adverse transition impact on the near-term return ratios. Notably, the deal has not yet received a go-ahead from RBI. The RBI has said it has not approved the announcement of a merger between Lakshmi Vilas Bank and India Bulls Housing Finance Ltd. \u201cIt is clarified that the merger announcement does not have any approval of RBI at this stage. The proposals, as and when received from these entities, will be examined in RBI as per extant regulatory guidelines\/directions,\u201d read a statement issued by chief general manager Yogesh Dayal on Saturday night.