Moneycontrol Be a Pro
Get App
Last Updated : Oct 10, 2019 03:41 PM IST | Source:

Indiabulls Housing plunges 19%, Lakshmi Vilas Bank falls 5% after RBI nixes merger

The banking regulator had initiated Prompt Corrective Action (PCA) against Lakshmi Vilas Bank on September 27

Moneycontrol News @moneycontrolcom
Representative image
Representative image
  • bselive
  • nselive
Todays L/H

Shares of Lakshmi Vilas Bank  shed 5 percent, while Indiabulls Housing Finance ended 19.5 percent lower on October 10 after Reserve Bank of India (RBI) has rejected a merger between both companies.

"This is to inform that RBI vide their letter dated October 9 has informed that the application for voluntary amalgamation of lndiabulls Housing Finance and lndiabulls Commercial Credit with Lakshmi Vilas Bank (LVB) cannot be approved," both companies said in a BSE release.

The banking regulator 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.


At close, Indiabulls Housing Finance ended at Rs 193.30, down 19.56 percent and Lakshmi Vilas Bank closed at Rs 25.65, down 5 percent on the BSE.

Indiabulls Housing Finance and Lakshmi Vilas Bank touched a 52-week low of Rs 187.50 and Rs 25.65, respectively.

The Great Diwali Discount!
Unlock 75% more savings this festive season. Get Moneycontrol Pro for a year for Rs 289 only.
Coupon code: DIWALI. Offer valid till 10th November, 2019 .
First Published on Oct 10, 2019 03:38 pm
Follow us on
Available On
PCI DSS Compliant