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Chennai-headquartered Indian Bank plans to revive its subsidiaries Ind Bank Housing and Indbank Merchant Banking Services. CEO Kishor Kharat said the revival plan has the approval of the board. “We will require a minimum of ₹9-crore additional capital for reviving Ind Bank Housing,” he said.
Ind Bank Housing is a joint venture between the bank and HUDCO.
According to Kharat, the board decided at its recent meeting to launch a rights issue. “HUDCO is interested in reviving the housing arm. The bank will contribute to the extent of its own holding in the subsidiary,” he added.
Talk of reviving the housing arm has been doing the rounds for quite some time now. Kharat admitted that there has been a lag due to some issues about debt. “We are, therefore, going to restructure, through which a major portion will be converted to CCPS (compulsorily convertible preference shares), which will help improve the debt-equity of the company. We are also looking to support the revival with a line of credit of ₹100 crore to start with. The process is underway,” he said.
“Indbank Merchant Services is also being activated. In both the subsidiaries, we are trying to rope in professionals from the market,” Kharat said.
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