IDBI agrees to purchase Tata Homefinance for Rs 50 crore
By Mumbai: | 31 May 2003
Mumbai: Industrial Development Bank of India (IDBI) has agreed to buy Tata Homefinance (THL), a wholly owned subsidiary of Tata Finance (TFL), for Rs 50 crore which is par for the total equity capital of the home loan company.
IDBI executive director A K Doda has already signed the share purchase agreement with TFL director F J da Cunha to buy the non-banking finance company's entire equity shareholding of Rs 49.98 crore.
The unlisted THL has a loan portfolio of about Rs 400-500 crore. It has 16 branches in 11 cities and is expected to "be one of the building blocks for IDBI's housing finance initiatives," an IDBI press communiqué said. "Notwithstanding the stiff competition in the segment, there is considerable scope for growth and the move would complement IDBI's plans to become a universal bank."
IDBI general manager Melwyn Rego will be the CEO of the proposed housing finance subsidiary.