- The Reserve Bank of India (RBI) has decided to determine the criteria of Indiabulls Group founder whose name had appeared in the Panama Papers before approving the proposal to merge the group’s housing finance arm with Lakshmi Vilas Bank (LVB).
- Panama papers is a huge leak of documents that exposed how the rich and powerful use tax havens to hide their wealth.The files were leaked from one of the world’s most secretive companies,a Panamanian law firm called Mossack Fonseca.
- Earlier,the boards of Lakshmi Vilas Bank(LVB) and Indiabulls Housing Finance had approved the merger between the two to create what would be known as the ‘Indiabulls Lakshmi Vilas Bank’.
- The merger is subject to the approval of the Reserve Bank of India (RBI) as well as the grant of other regulatory approvals.Further,the merger will give much needed capital for Lakshmi Vilas Bank(LVB) which is reeling under rising Non performing assets(NPAs) while the deal offers a lucrative banking licence to Indiabulls.
