Indian Bank is working on options to revive its housing subsidiary, Ind Bank Housing Ltd (IBHL). A few months ago, the Indian Bank board had approved the revival plan.
The Reserve Bank of India (RBI), if highly-placed sources are to go by, has suggested that the India Bank explore the possibility of inducting a partner in the housing subsidiary.
The banking regulator, it is learnt, felt that it would be better for Indian Bank to revive the housing subsidiary with a partner rather than doing it all by itself.
Following this, Indian Bank,is re-drawing its action programme on reviving the housing subsidary.
IBHL was formed as a subsidiary of Indian Bank sometime in 1991. It was doing well in the initial years. However, due to various factors including a high level of NPAs, it started showing financial strains. Due to a negative net worth , it was forbidden from accepting public deposits and in the absence of working funds, the main activity of extending housing loans was discontinued from the year 2000.
“Right now, we are engaged in recovery of dues and using it for reducing public deposits. At this stage, we are constrained from giving more details,” said a top official, who declined to be quoted.