Indiabulls Housing Finance Ltd shares settled 34.40 percent lower on Monday, quoting at Rs 255.90 per share on NSE. The mortgage lender hit a fresh 52-week low of Rs 240.05 intra-day, sliding over 38 percent from its Friday's close of Rs 390.10.

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Indiabulls Housing Finance's stock declined sharply as investors remained concerned over its merger with Lakshmi Vilas Bank, which has been placed under the Reserve Bank of India's prompt corrective action plan.

The RBI's action could be a setback to Lakshmi Vilas Bank's plans to merge operations with housing finance firm Indiabulls Housing Finance Ltd (IBHF) in a share-swap deal that was announced in April earlier this year.

The central bank placed the lender under prompt corrective action due to high non-performing assets, insufficient capital, high leverage, and a negative return on assets for two consecutive years.

LVB shares traded at Rs 34.75 per share on the BSE, down 4.92 percent from its previous close of Rs 36.55 per share.

So far this year, Indiabulls Housing Finance shares have declined by over 70 percent. The stock has lost approximately more than 43 percent in the last one month alone.

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First Published:Sept 30, 2019 10:23 AM IST