Chennai, April 5 (IANS): The board of directors of Lakshmi Vilas Bank (LVB) on Friday approved a scheme of amalgamation with Indiabulls Housing Finance Ltd (IHFL).

For every one share of Rs 10 each, the LVB shareholders will receive 0.14 equity share of Rs 2 each of Indiabulls Housing Finance.

The amalgamation will be under Sections 230 to 232 and other applicable provisions of the Companies Act, 2013 dealing with Companies (compromises, arrangements and amalgamations) Rules 2016, the bank said in a regulatory filing to the BSE.

The appointed date for the scheme shall be January 1, 2018 or such other date as may be mutually agreed between the amalgamating companies and is the date with effect from which the scheme shall be operative, the bank said.

The LVB said that the amalgamation will unlock value through synergies that exist exclusively. It will create a large and healthy diverse retail asset book, a high capital base for strong growth and a huge opportunity to foray into newer businesses that may increase the risk-fee income base of the amalgamated entity, it said.