Lakshmi Vilas Bank (LVB) has been placed under prompt corrective action plan by RBI due to high NPAs, insufficient capital, high leverage, negative return on assets for two consecutive years. In fact LVB got locked at its 5% LC at Rs.34.75 the moment it opened for trading, hitting a new low.
And Indiabulls Housing Finance, the company taking over LVB, is the top loser on the BSE since morning, hitting a new low at Rs.297. 10, going down 24%.
RBI corrective action plan on LVB could be a setback for Indiabulls merger plans and investors are worried because it puts the entire future in a state of uncertainty.
This merger is yet to get the RBI’s approval.