The Reserve Bank of India (RBI) is likely to approve the merger between the private sector lender — Lakshmi Vilas Bank (LVB) and the non-banking finance company (NBFC) Indiabulls Housing Finance (IBH).
Though there are concerns with IBH about its previous experience with the regulator, there are hopes that RBI might approve the merge,
Speaking on the development, R Gandhi, former Deputy Governor, RBI said, ‘At that time, the RBI was very conservative in terms of allowing new entrants into the banking system. So, only two entities were found suitable as compared to other applicants for the licence. As per the previous policy, exposure to sensitive sectors would have led to hesitation in granting licences. However, that is not a condition anymore’.