Indiabulls Housing-Lakshmi Vilas Bank merger gets CCI approval

IBHFL will hold around 90.5% of the post-merger enhanced equity capital of the merged entity

The Competition Commission of India (CCI) has approved the merger of Indiabulls Housing Finance Limited (IBHFL) and Indiabulls Commercial Credit Limited (ICCL) with Lakshmi Vilas Bank Limited (LVB).

IBHFL will hold around 90.5 per cent of the post-merger enhanced equity capital of the merged entity, while shareholders of LVB will hold around 9.5 per cent. 

ICCL, a non-deposit taking NBFC registered with RBI, is focussed on long-term secured mortgage-backed loans. Its merger with LVB will be in the overall interest of the company and will help it to utilise capital more efficiently than as a standalone NBFC, said the bank. 

"Also, given the regulatory framework governing new privae banks, it's prudent to conduct lending business under the LVB," it said.