Lakshmi Vilas Bank Ltd said on Wednesday the central bank has not approved its merger with Indiabulls Housing Finance Ltd.Ending months of uncertainty around the proposed merger, the Lakshmi Vilas Bank (LVB) on Wednesday said in a stock exchange filing, "This is to inform that RBI vide their letter dated October 09, 2019, informed that the application for voluntary amalgamation of lndiabulls Housing Finance Ltd and lndiabulls Commercial Credit Ltd with Lakshmi Vilas Bank Ltd cannot be approved." In April, private sector lender Lakshmi Vilas Bank Ltd had informed exchanges that its board has approved a merger with mortgage financier Indiabulls Housing Finance Ltd in an all stock deal. The bank had sought approval from the Reserve Bank of India (RBI) on 7 May, 2019. Lakshmi Vilas Bank is also being investigated by the police for alleged misappropriation of funds by its directors. LVB's shares closed about 5% lower at ₹26.95) on Wednesday, while Indiabulls Housing Finance Ltd closed 5.5% up at ₹1,308.65.

Source: Mint October 09, 2019 14:49 UTC