Dimapur, Oct. 12: All Indian Bank Officers’ Confederation (AIBOC) has appreciated the Reserve Bank of India (RBI) for refusing the voluntary amalgamation of Lakshmi Vilas Bank Ltd. (LVB) and Indiabulls Housing Finance (IBHF).
In a representation to the RBI governor, the AIBOC termed it as a welcome move. It expressed confidence that the RBI has analysed the situation and was aware of the closure of a large number of bank branches in the guise of branch rationalisation initiated by PSBs post-amalgamation/merger.
It was glad that the RBI has disapproved the proposal of an NBFC taking over a commercial bank, which otherwise, would have resulted in such NBFC availing of low-cost funds belonging depositors who had reposed trust in the banking industry.
According to the association, Lakshmi Vilas Bank Officers’ Association (LVBOA) has deeply engaged its members in pro-business activities for improving the business and has enthusiastically embarked upon initiatives like ‘Recovery Satyagraha’ and ‘Save Lakshmi’.
Acknowledging the RBI, the association was confident that they will assess any proposal of M&A dispassionately and reject such ill-conceived proposals.
