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