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RBI blocks Lakshmi Vilas-Indiabulls merger

Reuters 2019-10-09 14:39:00

BENGALURU (Reuters) - Indian lender Lakshmi Vilas Bank Ltd said on Wednesday the central bank has not approved its merger with Indiabulls Housing Finance Ltd.

This comes days after the Reserve Bank of India initiated a so-called “prompt corrective action” on the lender due to high level of bad loans, lack of sufficient capital to manage risks and a negative return on assets for two consecutive years.