RBI gives Ind Bank Housing time till December to complete revival process

NEW DELHI: The Reserve Bank has asked Ind Bank Housing Ltd to complete its revival process by the end of December and submit a board-approved plan.

State-owned Indian Bank is the promoter of Ind Bank Housing with 51 per cent stake in the company.

“On our request, RBI has given us time up to December 31, 2021 for completing the revival process of the company and to submit board approved plan for revival,” Ind Bank Housing said in a regulatory filing on Friday.

The company had reported a net loss of Rs 6.36 lakh in the quarter ended June 2021, which widened from Rs 4.38 lakh loss in the same period a year ago.

The company’s total revenues were Rs 6.39 lakh during the period, down from Rs 8.33 lakh.

In its annual report 2019-20, Ind Bank Housing said it has put in place an aggressive recovery mechanism for realisation of existing home loans.

As of March 31, 2020, it had only one employee on direct rolls, while others were engaged on contractual basis or deputed from the parent organisation, it said in the report.

In 2020-21, the company had a net loss of Rs 18.87 lakh. During FY20, the company had a profit of Rs 2.74 crore. After appropriating the profit, the accumulated losses of the company stood at Rs 134.83 crore as at March 31, 2020 as against Rs 137.58 crore a year ago, it said in its annual report.

Ind Bank Housing said it is making efforts for revival of its operations and has prepared a road map for restructuring of capital and restarting of lending operations. However, the efforts have been delayed due to the COVID-19 situation, it said.