IDBI Bank gets 10-12 proposals for IHFL sale

Bank has received around 10-12 proposals from potential buyers of its wholly-owned subsidiary IDBI Homefinance (IHFL), a top bank official said. "Around 10-12 parties have approached us and we are evaluating the proposals. We will shortlist (the buyer) in the next few months," IDBI Bank's Deputy Managing Director, Jitender Balakrishnan, told reporters on the sidelines of a FICCI-IBA-organised seminar here today. The bank has decided to sell IHFL with a view to consolidating its home loan finance business, which is currently being rolled out through both its own housing finance division and its Pune-based wholly-owned subsidiary. However, with valuations under pressure in the wake of the current downturn in the financial markets, the lender may not get what it expects. This could delay the sale process by a few more months. IDBI Bank had taken over the erstwhile Tata Home Finance in September 2003 and renamed it as IHFL with a view to operating a separate unit for its home loans business. IHFL presently has a home-loan portfolio of above Rs 2,700-crore and a presence in 18 centres across the country with 150 employees.