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CCI approves IndiaBulls Housing-Lakshmi Vilas Bank merger

On Friday, June 21st, The Competition Commission of India (CCI) made an announcement in which it revealed that the merger between Lakshmi Vilas Bank Limited (LVB) and Indiabulls Housing Finance Limited (IBHFL) and Indiabulls Commercial Credit Limited (ICCL) has been authorized.

As per reports, shareholders of LVB would be holding roughly 9.5 percent of the post-merger enhanced equity capital of the merged entity while IBHFL will hold about 90.5 percent of it.

Mostly focussed on long-term secured mortgage-backed loans, ICCL, a non-deposit taking NBFC registered with RBI plans on implementing this merger with LVB for the overall interest of the company while also simultaneously utilizing the assimilated capital more efficiently in comparison to a standalone NBFC.

Speaking on the merger ICCL released an official statement which says, “Also, given the regulatory framework governing new private banks, it’s prudent to conduct lending business under the LVB.”

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