The Reserve Bank of India, taking strict action on the private sector's Lakshmi Vilas Bank, has put it in the Prompt Corrective Action (PCA) framework. This means that Lakshmi Vilas Bank can neither give new loans nor open new branches. Explain that the RBI puts a bank in the PCA framework when it seems that the bank is not earning income or that the non-performing asset, or NPA is increasing.
However, this decision of RBI is expected to have an impact on the merger of Lakshmi Vilas Bank and Indiabulls Housing Finance. Recently, the Reserve Bank of India has recently launched several services of Punjab & Maharashtra Co-operative (PMC) Bank for next 6 months. Has been banned for
According to news agency Reuters, Lakshmi Vilas Bank is accused of alleged fraud. This charge has been made by Religare Finvest Limited (RFL). According to the allegation, the bank has rigged RFL's FD of Rs 790 crore. Meanwhile, the Economic Offenses Wing of the Delhi Police is investigating allegations of fraud and criminal breach of trust against the directors on the board of the bank.
This decision of RBI has come at a time when the merger process is going on between the 93-year-old Lakshmi Vilas Bank and Indiabulls Housing Finance. The process of this merger has been approved by the Competition Commission of India (CCI). However, approval of other institutions including RBI, SEBI is required. Explain that currently Laxmi Vilas Bank has 569 branches, 1046 ATMs across the country. On the other hand, if we talk about Indiabulls Housing Finance, there are more than 220 branches across the country.
Let us tell you that Indiabulls Housing Finance Limited is running the court in the money laundering case. The NGO Citizens Whistle Blower Forum has filed a petition in the Delhi High Court that Indiabulls Housing Finance Limited, through its promoters and various group companies, gave suspicious loans to companies owned by the big corporate group.
While hearing this petition, the Delhi High Court recently sent a notice to Indiabulls Housing Finance Limited, Reserve Bank of India, Security and Exchange Board of India, National Housing Bank and Serious Fraud Investigation Office.
When did Laxmi Vilas Bank get license from RBI?
By the way, in the year 1926, Lakshmi Vilas Bank came into existence. After this, the license was obtained from the Reserve Bank of India in 1958. At the same time, the expansion of the bank's branch started from 1974. Lakshmi Vilas Bank's branch and financial centers are present in Andhra Pradesh, Karnataka, Kerala as well as Delhi, Mumbai and Kolkata.
