IDBI to float housing finance arm

Mumbai: The Industrial Development Bank of India (IDBI) is planning to set up a housing finance arm as a 100-per cent subsidiary. IDBI chairman P P Vora, who was till recently with the National Housing Bank (NHB), said they have already had held discussions with the NHB.

This will be IDBIs entry point into the retail sector. "We need to tap the retail route, where the returns are high and non-performing assets could be low," Vora said.

Vora also said a subsidiary is being set up as retail financing requires a different mindset. "But this will not be a part of IDBIs main business activities."

At present, IDBI is not looking for a partner or acquiring a housing finance company. "We may think about them at a later stage," he said.