Dewan Housing likely to take over IDBI Home Finance

14 January 2009

IDBI Home Finance has attracted three suitors, Tata Capital Ltd, Religare Enterprises Ltd and Dewan Housing Finance Ltd. IDBI Bank's board will meet on 23 January to select the most suitable bidder for the home finance arm.

IDBI Bank had received around 10-12 proposals from potential buyers of its wholly-owned subsidiary IDBI Homefinance (IHFL).

The proposals have now been shortlisted to three, with Dewan Housing reported to have emerged the forerunner , with its bid of Rs311 crore.

Unconfirmed reports say that the offers by Tata Capital and Religare were Rs225 crore and Rs211 crore respectively.

IDBI Home finance reported profit after tax of Rs298.8 crore in 2007-08.

The loan portfolio of the company comprises of 97 per cent of salaried individuals at varying rates of interest. As on 31 march 2008, the capital adequacy norms of the company stood at 16.1 per cent as against the prescribed NHB norms of 12 per cent.