Indiabulls merger with bank will lead to CAGR of 25%: MD Lakshmi Vilas Bank

Parthasarathi Mukherjee, managing director and chief executive of the bank, tells Business Standard the move would give a momentum to the concept of NBFCs entering the banking system through mergers

The board of Lakshmi Vilas Bank (LVB) approved the proposed merger with Indiabulls Housing Finance last week. Parthasarathi Mukherjee, managing director and chief executive of the bank, tells T E Narasimhan & Gireesh Babu the move would give a momentum to the concept of NBFCs entering the banking system through mergers. Edited excepts.

What prompted the bank to go for the merger?

The bank decided to raise funds through strategic investors, and we did raise some amount through qualified institutional placement. But since it was not enough, we went for the merger. We had 8-10 proposals. But none came to conclusion, except