Chennai: Lakshmi Vilas Bank (LVB) said it will merge with Indiabulls Housing Finance (IBHF) to create the eighth largest private sector lender in an all- stock deal, a move that will be keenly watched on how it passes the regulatory muster.
The second largest pureplay mortgage lender IBHF, whose promoters have exposure to the realty sector was one of the many unsuccessful applicants for universal banking licence in the last round in 2015. The partners intend to call the merged entity as ‘Indiabulls Laxmi Vilas Bank’.
The two parties seem to be betting on immediate precedents, where the RBI has given the green signal to similar mergers, and cited the HDFC-promoted affordable housing-focused Gruh Finance’s merger with Bandhan Bank and mid-sized NBFC Capital First merging with IDFC Bank last year.
