The All India Bank Employees' Association (AIBEA) has urged RBI Governor Shakthikanta Das to not allow the proposed merger of Lakshmi Vilas Bank (LVB) with Indiabulls Housing Finance Ltd (IHFL).

The central bank should instead merge LVB with one of the public sector banks, AIBEA General Secretary CH Venkatachalam said in a letter to the RBI Governor.

“Taking into account the fragile health of LVB, it is necessary for RBI to take a holistic view and merge it with one of the public sector banks in public interest, instead of allowing LVB to merge with IBH,” Venkatachalam said.