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No question of closing down banks: RBI
No question of closing down banks: RBI
Economy

RBI denies merger of Lakshmi Vilas Bank, India bulls Housing Finance

Agency News

New Delhi, Apr 7: The Reserve Bank of India (RBI) has refuted media reports stating that the central bank has approved the merger of the Lakshmi Vilas Bank and the Indiabulls Housing Finance Limited.

The Bank said it has been learnt through media reports that LVB and IBHFL have made a merger announcement on April 5, 2019 with approval of their respective Boards. It was also reported that the presence of two nominee directors of the RBI on the Board of LVB implies RBI’s indirect approval of the proposal. The central bank, however, clarified that the merger announcement does not have any approval of RBI at this stage.

“It is also clarified that presence of Additional Directors nominated by the RBI on the Board of LVB does not imply any approval of the RBI of the merger proposal. Moreover, the Additional Directors have clearly mentioned at the meeting that they have no view on the proposal,” the RBI said in a statement on Saturday. The top bank said the proposals, as and when received from these entities, would be examined as per extant regulatory guidelines. (UNI)