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- Indiabulls Housing Finance-Lakshmi Vilas Bank merger gets nod from CCI
- Indiabulls Housing Finance to get access to low cost deposits and benefit from wider geographical reach
The Competition Commission of India (CCI) has approved the merger of Indiabulls Housing Finance- Lakshmi Vilas Bank, said the housing finance major. In April 2019, Lakshmi Vilas Bank announced that it was going to merge with Indiabulls Housing Finance. As per the bank’s announcement, the merger was slated to take place through a share swap deal. The deal is expected to increase the capital base and geographical reach of the combined entity. Let’s know more of Indiabulls Housing Finance-Lakshmi Vilas Bank merger below.
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How Will the Proposed Merger Likely to Pan Out?
The shareholders of Lakshmi Vilas Bank will get 14 shares of Indiabulls Housing Finance for every 100 shares held by them. The combined entity will have a workforce of 14,302 people in several departments. The loan book size is estimated to be around ₹1.23 lakh crore. Furthermore, Indiabulls Housing Finance will have an access to low-cost deposits, increased clientele base, geographical diversification and cross-selling opportunities.
Indiabulls Housing Finance-Lakshmi Vilas Bank Merger – Just Adds to the List of Mergers
Companies are increasingly merging with each other to chart out their respective growth trajectories. Recently, the news of IndusInd Bank merging with Bharat Financial Inclusion Limited from July 1, 2019, has appeared on several journals. The government has already merged Vijaya Bank and Dena Bank with Bank of Baroda (BoB). With that, the merged entity has arguably become the country’s third largest lender.