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Lakshmi Vilas Bank to Merge into Indiabulls Housing Finance

Published on April 06, 2019
The board of Lakshmi Vilas Bank has approved its merger with Indiabulls Housing Finance (IBH) through a share swap deal.

Lakshmi Vilas Bank to Merge into Indiabulls Housing Finance

Details:

  • The merger will help Indiabulls get access to low-cost stable funds and entry into banking.
  • Indiabulls Housing Finance which is the nation's second largest housing finance firm, had unsuccessfully applied for a banking licence in 2013.
  • The merger will also enable Tamil Nadu-based LVB to obtain a larger geographical presence.
  • The merged entity will have a net worth ₹19,472 crore and a loan book ₹l,23,393 crore for the nine months of FY19. 
  • Its employee strength will stand at over 14,300.
  • The share swap ratio of 0.14:1, or 14 shares of IBH for every 100 shares of LVB, has been agreed upon by the respective boards of directors.
  • The deal is subject to regulatory approvals, including that from the RBI.
  • As a first step towards the proposed merger, IBH's board has constituted a reorganisation committee headed by independent director and former RBI Deputy Governor SS Mundra.

Question:

Q. The board of which bank has approved its merger with Indiabulls Housing Finance (IBH) through a share swap deal?
Federal Bank
Lakshmi Vilas Bank
DCB Bank
Karnataka Bank

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