Competition Commission of India (CCI) has approved the merger of the Indiabulls Housing Finance and Lakshmi Vilas Bank. After the merger, Indiabulls Housing Finance will get access to low cost deposits, geographical diversification and expanded client base and cross selling opportunities.
Lakshmi Vilas Bank is going to merge with Indiabulls Housing Finance in a share swap deal with intent to create a combined entity with a larger capital base and wider geographical reach.
Lakshmi Vilas Bank :
Lakshmi Vilas Bank was founded in 1926 by a group of seven businessmen of Karur under the leadership of Shri V.S.N. Ramalinga Chettiar. Their objective was to cater to the financial needs of people in and around Karur who were occupied in trading businesses, industry and agriculture. The bank was incorporated on 3 November 1926 under the Indian Companies Act, 1913, and obtained the certificate to commence business on 10 November 1926. Subsequent to introduction of the Banking Regulations Act, 1949 and Reserve Bank of India as the regulator for the banking sector, the bank obtained its banking license from RBI on 19 June 1958, and on 11 August 1958 it became a ‘scheduled commercial bank’ signifying capability to operate as a full-fledged commercial bank.
Indiabulls Housing Finance :
Indiabulls Housing Finance Limited is a mortgage lender which is headquartered in New Delhi, India. It is India’s second largest housing finance company and is regulated by the National Housing Bank. It is part of Sameer Gehlaut’s Indiabulls group and contributes approximately 80% of the groups turnover.