Shares of Lakshmi Vilas were locked in the lower circuit limit of 5 per cent on Thursday on the Bombay Stock Exchange after the Reserve Bank of India (RBI) on Wednesday rejected the proposed amalgamation of lndiabulls Housing Finance (IBHFL) with the bank. The RBI said the application for the voluntary amalgamation of IBHFL and its subsidiary lndiabulls Commercial Credit with LVB could not be approved. The stock of the private sector lender has been hitting the lower circuit limit of 5 per cent since the past eight consecutive sessions, after the banking regulator initiated prompt corrective action (PCA) against the Chennai-based bank.
Following the development, shares of the company slipped as much as 5 per cent in the intra-day trade at 25.65 a piece on BSE. On NSE, the shares of the company were trading at Rs 25.65 apiece, down by 4.82 per cent. Meanwhile, the BSE Sensex was at 37,929.86, down by 248.09 points or 0.65 per cent at 12:00 hours.