News By/Courtesy: Ambuja Jain | 08 Apr 2019 23:18pm IST

Private sector lender Lakshmi Vilas Bank board has approved a scheme of amalgamation with Indiabulls Housing Finance. Lakshmi Vilas Bank shareholders will get 14 shares of Indiabulls Housing Finance for 100 held.  Lakshmi Vilas Bank has total assets of Rs.40,429 crore and capital and reserve of Rs.2,328 crore as on March 31, 2018, while Indiabulls Housing Finance has total assets of Rs.1,31,903 crore and consolidated net worth of Rs.17, 792 crores as on March 31, 2018.

The net worth of amalgamated entity will have a net worth of Rs.19,472 crore ($2.81 billion), as of December end 2018 with 14,302 employees and a loan book of Rs.1,23,393 crore. Mr. Prabhakar, head of research, IDBI Capital in Mumbai, said that ‘Indiabulls will get a banking tag, which will bring down its cost of funds, so it is a bigger win for them. This merger will give good branding and better pan-India presence for the Tamil Nadu-based Lakshmi Vilas.’  The amalgamated return on equity and assets stood at 19.20 per cent and 2.0 per cent, respectively. Operating profit and profit of the amalgamated entity stood at Rs.4,630 crore and Rs.2,455 crore, respectively. Gross non-performing loans and net non-performing loans stood at 3.50 per cent and 2 per cent, respectively.

Chennai based Lakshmi Vilas Bank said that, ‘The merger of the two organizations will unlock value through its various synergies that exist exclusively but in unison, will create a large, healthy and diverse asset book, high capital base for strong growth and it will also allow the merged company to collectively foray into newer businesses that may increase the risk fee income base of amalgamated entity.’

Section Editor: Shreyashi Tiwari | 08 Apr 2019 23:22pm IST

Tags : #Lakshmi #Vilas #Bank #Indiabulls #Housing #Finance #Approved

India Related Latest News

Copyright Kalyan Krishna MediaZ Private Limited. All rights reserved. Unless otherwise indicated, all materials on these pages are copyrighted by Kalyan Krishna MediaZ Private Limited. All rights reserved. No part of these pages, either text or image may be used for any purpose. By continuing past this page, you agree to our Terms of Service, Cookie Policy, Privacy Policy and Content Policies.