RBI approval will be a challenge for this deal considering the business interests of Indiabulls promoters.
Indiabulls Housing Finance was one of the applicants for a universal banking licence in 2013 when the Reserve Bank of India allowed companies to apply. But it didn’t get one.
The RBI has had an aversion to banks taking on high real estate exposures, and also denied banking licences to entities with a considerably large real estate business.