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IDBI
agrees to purchase Tata Homefinance for Rs 50 crore
Our Banking Bureau
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.
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