Lakshmi Vilas Bank shares plummet as RBI stalls Indiabulls Housing merger

The share price of Indiabulls Housing Finance Ltd depreciated by 14% to 204.40 in the early trade on Thursday, after Reserve Bank of India rejected Indiabulls’ proposal to merge with the capital starved private sector lender Lakhsmi Vilas Bank (LVB).The shares of Lakshmi Vilas Bank Ltd. were trading 4.82% low at 25.65.Both LVB as well as IBHF informed the bourses late Wednesday evening about the RBI decision, but did not specify the reasons for the same, which however, for many was in the offing given the regulator’s stated opposition to corporates and realty-focused entities entering the banking arena.The merger proposal had already received all other approvals, including those from the fair trade watchdog.Since the central bank has been opposed to the idea of bank promoters hailing from

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