Indian Bank to wind up Ind Bank Housing after RBI cancels CoR, ET RealEstate
![](https://yoursproperties.com/wp-content/uploads/2023/10/indian-bank-to-wind-up-ind-bank-housing-after-rbi-cancels-cor.jpg)
CHENNAI: Public sector Indian Bank will wind up its subsidiary Ind Bank Housing Ltd after RBI cancelled the certificate of registration (CoR) of the Housing Finance Company (HFC).
Indian Bank MD & CEO S L Jain told reporters in Chennai on Thursday that Ind Bank Housing had not been working for the past two decades.
“Now, we (Indian Bank) are also doing housing loans. We will wind it (Ind Bank Housing) up,” he said while responding to a query on whether steps would be taken to revive the HFC.
The development comes more than a month after the RBI cancelled the CoR of Ind Bank Housing Ltd, in which Indian Bank holds 51% of shares. Established in 1991 to offer housing loans with its registered office in Chennai, HFC ran into rough weather since the year 2000 with mounting NPAs.
On the other hand, Indian Bank reported its highest y-o-y net profit at Rs 1,988 crore during the quarter ended September 30, 2023, a jump by 62% when compared with the corresponding quarter in FY23 at Rs 1,225 crore. It was on the back of rise in net interest income by 23% in the second quarter of FY24 over the year ago quarter.
While advances grew by 12% YoY to Rs 4,92,288 crore in the quarter ended September 30, 2023, the bank reported a total business of Rs 11,33,091 at the end of September 30, 2023.
The fresh slippages during the July-September quarter of FY24 was at Rs 1,976 crore, of which corporates accounted for Rs 570 crore.
Jain said the fresh slippages are two – three corporates in Odisha and Chennai, who are into sectors including power. The recovery during the quarter stood at Rs 2,265 crore, which is higher than the fresh slippages, according to him.