Private sector lender Lakshmi Vilas Bank Ltd said that its board has approved a merger with mortgage financier Indiabulls Housing Finance Ltd in an all stock deal. The merged entity, to be called Indiabulls Lakshmi Vilas Bank, will be among the top eight private banks in India by size and profitability, Indiabulls Housing Finance said in a filing with stock exchanges.
The share swap ratio for the merger has been fixed at 1:014, which means that for every 100 shares of LVB held by shareholders, they will be entitled to receive 14 shares of Indiabulls Housing Finance, according to the exchange filing.
LVB operated 569 branches and 1,046 ATMs across 19 states and one Union territory. Indiabulls Housing Finance is involved in providing home loans, loan against property to retail customer including MSMEs and businesses, lease-rental discounting and construction finance through a network of branches spread across 18 states and three Union territories.
The merger is subject to the approval of the Reserve Bank of India (RBI), as well as the grant of other regulatory approvals.