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Indian Bank may merge home finance arm with self by March

Source : BUSINESS_STANDARD
Last Updated: Fri, Dec 07, 2012 21:01 hrs

pIndian Bank was planning to merge its housing finance arm Ind Bank Housing Ltd with itself by March 31 and was looking for a consultant to advise it on the same a senior bank official said on Fridaypp&ldquoWe are already looking for a consultant and should finalise on who it should be by end-December We want the merger of the arm to happen in the current financial year if all regulatory approvals fall into place&rdquo the official saidppIndian Bank has been intent on merging its housing finance arm with itself but has not been able to make any serious progress on that front due to various issues including capitalppHowever the official said the bank was intent on pushing through the merger this year as it would help bolster the bank&rsquos retail book bringing specialist home finance employees and also as it would help the bank with capital conservation in the long runppIn the quarter ended September 30 Indian Bank Housing reported a loss of Rs 22 crore compared with a loss of Rs 68 crore a year agoppThe last notice by the home finance company to the exchanges shows that Indian Bank held 76 per cent stake in Indian Bank Housing as on September 30ppThe home finance company&rsquos business has been hit by Indian Bank itself getting active in the home loan market and also as the parent has access topublic deposits helping it price its loans cheaper than the armppShares of Indian Bank were up 25 percent at Rs 1945 on the National Stock Exchange Shares of Ind Bank Housing were up 43 at 885rupees on the BSEp

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