After the RBI eliminates the CoR, Indian Bank will close down Ind Bank Housing.

CHENNAI: Following the RBI’s cancellation of the Housing Finance Company’s certificate of registration (CoR), the public sector Indian Bank would wind up its subsidiary Ind Bank Housing Ltd (HFC).

Reporters in Chennai were informed on Thursday by Indian Bank MD & CEO SL Jain that Ind Bank Housing has not operated for the last 20 years.

“At this point, Indian Bank also offers home loans. He stated, “We will wind it (Ind Bank Housing) up,” in response to a question on whether action will be made to bring the HFC back to life.

More than a month has passed since the RBI revoked Ind Bank Housing Ltd.’s certificate of reserve, in which Indian Bank owns 51% of the shares. HFC, which was founded in 1991 and has its registered office in Chennai, has been struggling since the year 2000 due to a growing number of non-performing assets.

However, Indian Bank recorded its largest year-over-year net profit of Rs 1,988 crore for the quarter that concluded on September 30, 2023.

This is a 62% increase over the equivalent quarter of FY23 when the bank earned Rs 1,225 crore. It was due to a 23% increase in net interest income in the second quarter of FY24 compared to the same quarter the previous year.

The bank reported total business of Rs 11,33,091 at the end of September 30, 2023, despite advances growing by 12% YoY to Rs 4,92,288 crore in the quarter ended September 30, 2023.

During the July-September quarter of FY24, there were 1,976 crore new slippages, of which Rs 570 crore were attributed to corporates.

According to Jain, the two or three corporate slippages that occurred recently are from the power sector and are based in Chennai and Odisha. He claims that the recovery during the quarter was Rs 2,265 crore, greater than the amount of new slippages.