IDBI Bank has put its wholly-owned housing finance subsidiary IDBI Home Finance for sale five years after it purchased it from the Tatas, a leading financial daily reported.
While discussions with potential buyers have not reached a final stage, an unnamed person familiar with the development was quoted in the report as saying, financial services companies such as Tata Capital, Edelweiss, Religare Enterprises along with two private equity investors have evinced an interest in the housing finance company.
IDBI is looking to sell its subsidiary as the parent company itself is involved in the mortgage lending business and it feels that the present situation of two companies doing the same business was leading to unnecessary duplication, the report said.
According to the source quoted in the report, IDBI Bank is looking for a selling price of around Rs 170-200 crore, IDBI Homefinance’s home loan portfolio as on March 31 2008 was Rs 2,710 crore, up Rs 563 crore from a year earlier.
The company, which has 18 branches across major cities, had reported a net profit of Rs 30 crore for 2007-08.
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