Business & Economy

Indiabulls Financial Services merges with its home loan arm

NetIndian News Network

Mumbai, March 9, 2013

Indiabulls today announced the reverse merger of Indiabulls Financial Services Limited (IBFSL) with Indiabulls Housing Finance Limited (IHFL), its home loan arm.

IHFL is registered as a housing finance company (HFC) and is regulated by the National Housing Bank (NHB).
The share swap ratio among the stake holders in the two companies has been fixed at 1:1, a press release from the company said.
“The Union Finance Minister’s budgetary proposal to allow additional tax deductions for first- time home buyers has given a new impetus to the real estate sector and we see this as a great opportunity for home loan companies to contribute to the nation’s growth," Mr Gagan Banga, CEO of IHFL said.
The release said the amalgamation would enable efficient utilization of the company’s capital, consolidating it into the HFC where most of the incremental mortgages business was being booked. This amalgamation underlines the company’s long term commitment to the mortgage finance business, it said.
Going forward IHFL will be planning to offer a wider range of innovative products on housing finance, especially for the affordable segment below Rs 25 lakhs, it said.
For the nine months ending December 31, 2012, the company’s assets under management (AUM) stood at Rs. 32,551 crore, up from Rs. 27,521 crore as on March 31 2012. For the same period, the company clocked a profit after taxes of Rs. 898 crore. The PAT for the entire FY 2012 was Rs. 1,006 crore, the release added.
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