The Reserve Bank of India (RBI) has cancelled the Certificate of Registration of Chennai-based Ind Bank Housing Ltd. Indian Bank and HUDCO (Housing and Urban Development Corporation Ltd) are major shareholders in the housing finance company, holding 51 per cent and 25 per cent stake, respectively. The company was set up in 1991.
The housing finance company’s net loss widened to ₹55.78 lakh in FY23 against ₹12.93 lakh in FY22.
The balance loss carried to balance sheet stood at ₹135.70 crore in FY23 against ₹135.15 crore in FY22, per the HFC’s annual report.
The company said its capital adequacy ratio is negative due to accumulated losses. “The company is currently not providing any new loans. The credit period of existing loans have already expired and the company is taking conscious efforts to recover the loans given,” per the annual report.
The RBI, in a statement, said the company shall neither transact the business of a Housing Finance Institution nor of a Non-Banking Financial Institution as defined in National Housing Bank Act, 1987 and Reserve Bank of India Act, 1934, respectively.