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