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Last Updated : Oct 10, 2019 03:41 PM IST | Source: Moneycontrol.com

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

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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.

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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.

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First Published on Oct 10, 2019 03:38 pm
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