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Indian Bank will take a decision on its loss-making subsidiaries in the next two months, a senior official of the bank said today.
Speaking to Business Line on the sidelines of a press conference, held here to announce a tie-up with TVS Motor Company, the bank's Chairman and Managing Director, Mr T.M. Bhasin, said that the bank will sell a stake in Ind Fund Management. He did not disclose further information. The bank intends to “revive” Indbank Merchant Banking, he said.
The bank may merge Indbank Housing with itself, said Mr V. Ramagopal, Executive Director, Indian Bank. He said that revival of the ‘defunct' IndBank Housing is also an option, he said. All housing loans have been stopped only the previous mortgages payments are being collected, he said.
On the new insurance joint venture initiative, he said seven companies have shown interest and the request of proposal would be received in four weeks. Indian Bank had earlier decided to revive its merchant banking subsidiary, Indbank Merchant Banking Services, in 2006 but was not successful. The share price of the company closed on the Bombay Stock Exchange at 18.25 on Tuesday. The share price of IndBank Housing closed at Rs 11.91.
On the tie-up, Mr Bhasin said that the bank expects to lend about Rs 10 crore in the next two months for financing TVS three-wheelers. In a year's time, the bank, through its 1,823 branches, would step up three-wheeler financing of TVS Motors and Bajaj Auto to Rs 150 crore.
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