Mumbai, Jun 21 (IANS): The Competition Commission of India (CCI) has approved the merger of housing finance company Indiabulls Housing Finance and the Lakshmi Vilas Bank.

Following the announcement of the approval, the bank's scrips hit the upper circuit of 10 per cent on the BSE, as the lender, struggling with bad loans, is set to get a deep-pocketed parent.

"The Competition Commission of India (CCI) has by way of its letter dated June 20, 2019 intimated that CCI, at its meeting held on June 20, 2019, considered the proposed combination and approved the same," Indiabulls Housing Finance said in a BSE filing.

"The Scheme of Amalgamation remains subject to receipt of applicable regulatory and other approvals," the filing said.

The firm's scrips on the BSE closed 2.02 per cent higher at Rs 612.05 apiece, while those of the bank ended 9.96 per cent higher at Rs 63.50 apiece.

The board of directors of the bank in April had approved a scheme of amalgamation with Indiabulls Housing Finance Ltd.