RBI to take time to examine LVB-IHFL merger deal: Report

The Reserve Bank of India (RBI) may take more time to examine the Lakshmi Vilas Bank (LVB) and India Bulls Housing Finance Ltd (IHFL) merger deal, an official source said on Wednesday. "It (LVB-IHFL merger) may take time for examination," a source said, adding the central bank may seek more information also on the proposed merger after going through the proposals from the entities. An email sent to the RBI on the issue has not elicited any response so far. The All India Bank Employees` Association (AIBEA) had urged RBI Governor Shakthikanta Das not to allow the proposed merger of LVB with IHFL. The central bank should instead merge LVB with one of the public sector banks, AIBEA General Secretary C.H. Venkatachalam had said in a letter to the RBI Governor.

RBI earlier said it is yet to approve Lakshmi Vilas Bank-IHFL merger. In a statement the RBI had noted that it would examine the proposal as per extant regulatory guidelines and directions. Last week, the board of Lakshmi Vilas Bank approved a scheme of amalgamation with the IHFL. LVB stock closed on Wednesday at Rs 88.40 per share, down 4.43 per cent on its previous close on the BSE, while IHFL, at Rs 825.50, a share was down 0.73 per cent.