Current Affairs

Lakshmi Vilas Bank to Merge into Indiabulls Housing Finance

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

Lakshmi Vilas Bank to Merge into Indiabulls Housing Finance Lakshmi Vilas Bank to Merge into Indiabulls Housing Finance Reviewed by Ramandeep Singh on April 06, 2019 Rating: 5

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