Lakshmi Vilas Bank hits 5% UC

Lakshmi Vilas Bank has been figuring among the top three gainers on the BSE for almost this entire week, hitting its 5% UC consistently. Today too, it hit the 5% UC at Rs.92.75 the moment it opened for trading.

The stock is up on unconfirmed reports that the small cap bank is set to be taken over by Indiabulls Housing Finance. Economic Times reported that the Boards of both the companies are to meet this week to work out the details of the merger.

The plan is to merge the bank with the home finance company and then apply to the RBI for transferring the banking licence to the merged entity.  Once cleared by the boards, the proposal would be sent for RBI’s approval.