LVB under pressure as RBI initiates PCA; Indiabulls Hsg Fin tanks over 30%

Both LVB and Indiabulls Housing Finance are proposed to merge. Last month, IBHFL said it expects the regulator to take a decision on its merger plan with Lakshmi Vilas Bank in the next two months.

Shares of Lakshmi Vilas Bank (LVB) and Indiabulls Housing Finance came under pressure in the early trade on Monday after the Reserve Bank of India (RBI) initiated prompt corrective action (PCA) plan on the former. 

At 09:49 am, the stock of LVB was locked at the lower circuit limit of 5 per cent at Rs 34.75 apiece on the BSE while that of Indiabulls Housing Finance was trading over 14 per cent lower at Rs 334.15. 

Both LVB and Indiabulls Housing Finance are proposed to merge. Last month, Indiabulls Housing Finance said it expects the regulator to take a