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Indiabulls housing Fin tanks as RBI clamps down on Lakshmi Vilas Bk

Indiabulls Housing Finance has tanked in trade, after the Reserve Bank imposed operational curbs on Lakshmi Vilas Bank - restrictions that also put a question mark on the proposed merger of the 2 entities.

RBI's move to bring the bank within the ambit of the Prompt Corrective Action or PCA framework sets ceilings and limits on big-ticket and high-risk lending. The proposed merger of Lakshmi Vilas Bank and Indiabulls Housing Finance was still awaiting the central bank’s approval.

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