Shweta Suri
IDBI Home Finance, the wholly owned subsidiary of Industrial Development Bank of India, formally known as IDBI Bank, is now up for sale. IDBI Bank is selling out its home finance arm with a view to raise up to Rs 200 crore.
The bank is already in initial talks with a number of companies including Tata Capital, Religare Enterprises, Edelweiss, and two other private equity investors. IDBI Home Finance was earlier known by the name of Tata Home Finance (subsidiary of Tata Group) before its acquisition in September 2003.
IDBI Bank is going through with the deal to avoid unnecessary duplication as it itself carry out mortgage lending business. The loan portfolio of IDBI Home Finance stood at Rs 2710 crore and reported a net profit of Rs 30 crore at end of March 2008. The company carries out its mortgage business through 18 branches across major cities.
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