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India: Lakshmi Vilas-Indiabulls bank merger hits snag

 |  October 10, 2019

Indian lender Lakshmi Vilas Bank (LVB) said on Wednesday, October 9, the central bank had not approved its merger with Indiabulls Housing Finance, making it the latest bank to face struggles in an already troubled sector. 

The country’s banking industry, which is going through a tumultuous time, plagued by issues including high levels of bad loans, took a big hit last year after a major infrastructure conglomerate collapsed, straining liquidity in the sector. 

“RBI vide their letter dated October 09, 2019, informed the application for voluntary amalgamation of Indiabulls Housing Finance Limited and Indiabulls Commercial Credit Limited with The Lakshmi Vilas Bank Limited cannot be approved,” LVB said in a statement to exchanges on Wednesday.

Full Content: Reuters

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