New Delhi: Competition Commission of India (CCI) has approved the merger of the Indiabulls Housing Finance and Lakshmi Vilas Bank.

Indiabulls Housing Finance in regulatory filing informed that "CCI at its meeting held on 20 June 2019, considered the proposed combination and approved the same," Indiabulls Housing Finance said in a BSE filing.

Shares of Lakshmi Vilas Bank hit the upper circuit of 10% after CCI approved its merger with Indiabulls Housing Finance.

In April this year, Lakshmi Vilas Bank had announced its merger with Indiabulls Housing Finance in a share-swap deal with intent to create a combined entity with a larger capital base and wider geographical reach.

The board of Lakshmi Vilas Bank had approved the merger with Indiabulls Housing Finance in which shareholders of the bank will get 14 shares of Indiabulls Housing Finance for every 100 shares they hold.

The combined entity, with employee strength of 14,302, will have a loan book size of 1.23 lakh crore for the first nine-month period of 2018-19.

After the proposed merger, Indiabulls Housing Finance will get access to low-cost deposits, geographical diversification and expanded client-base and cross-selling opportunities.

Shares of Indiabulls Housing Finance is trading 1.36% up at 608.10 on BSE.

(With inputs from PTI)