Lakshmi Vilas Bank Home Loan

News About Lakshmi Vilas Bank Home Loan

• LVB amends scheme of amalgamation

  Lakshmi Vilas Bank (LVB) which was to merge with Indiabulls Housing Finance Limited (IBHFL) has amended the scheme of amalgamation. Following the amendment, IBHFL and its subsidiary Indiabulls Commercial Credit Limited (ICCL) will merge into the bank.

  The new scheme will see IBHFL will hold around 90.5% of the equity capital while 9.5% will be held by the shareholders of the bank. LVB will issue equity shares to both the companies on the record date and no separate consideration shall be paid for the transfer.

  It is noteworthy to mention here that ICCL’s merger with the bank will enable them to utilize the available capital more efficiently rather than under the standalone NBFC. ICCL is registered with the Reserve Bank of India and focuses on long-term secured mortgage-backed loans.

  8 May 2019

• AIBEA urges RBI to merge Lakshmi Vilas Bank with a PSU

  As per reports, the All India Bank Employees' Association (AIBEA) has requested RBI to merge Lakshmi Vilas Bank with a public sector bank (PSU). The association has reportedly cited the fragile condition of Lakshmi Vilas Bank as the main concern. AIBEA has also opposed Indiabulls Housing Finance Ltd.’s effort to acquire the bank.

  According to reports, Lakshmi Vilas Bank has Rs.30,000 crore as public deposits. In a letter written to the Governor of RBI, AIBEA General Secretary, C.H. Venkatachalam, said that RBI should consider merging Lakshmi Vilas Bank with a public sector bank because a lump sum amount of the public is lying with the bank.

  Earlier, IBH had applied for a banking license, which wasn’t approved by RBI. As per Venkatachalam, IBH’s plan to acquire Lakshmi Vilas Bank is a move to establish IBH as a bank.

  12 April 2019

• Merger with Indiabulls Housing Finance approved by Lakshmi Vilas Bank

  Lakshmi Vilas Bank Limited on Friday announced that its board of directors have approved the merger with Indiabulls Housing Finance Limited. The private lender stated that the merger will enable Indiabulls Housing Finance Limited to get access to low-cost deposits and provide geographical diversification. It added that both companies will benefit from the merger when it comes to expanding its client base as well as in increasing the number of cross-selling opportunities.

  In the regulatory filing, the bank hoped that the merger will create a large and healthy diverse retail asset book, a high capital base for strong growth, and a huge opportunity to foray into new businesses. It added that following the merger the bank will be able to create a pan India presence across all Tier cities.

  It needs to be mentioned here that after the merger, shareholders of Lakshmi Vilas Bank will get 0.14 share of Indiabulls Housing Finance.

  Lakshmi Vilas bank as of 31 March 2019 had total assets of Rs.40,429 crore and capital and reserves of Rs.2,328 crore. Indiabulls Housing Finance, on the other hand, had total assets of Rs.1,31,903 crore and a consolidated net worth of Rs.17,792 crore as of 31 December 2018.

  It is noteworthy to mention here that Indiabulls Housing Finance deals in providing home loans and loans against property to retail customers that include MSMEs and businesses. It has a network of branches that are spread across 18 states and 3 Union Territories of the country.

  11 April 2019