Indian Bank gets Rs 63 cr, post Indfund merger
The board of Indian Bank has approved the merger of the bank’s wholly-owned asset management subsidiary, Indfund Management Limited (IFML), with itself, which will be completed in another three months. Post the merger, around Rs 63.03 crore will flow into the bank’s reserves as Tier-I capital.
“At present, Indfund Management is not involved in any business activity. While Rs 48.71 crore has been deployed as share capital, Indfund has a reserve surplus of Rs 14.32 crore. This total amount will flow into the reserves of the bank, which will prop up our Tier-I capital and make it easy to meet the Basel-III norms,” said TM Bhasin, chairman and managing director of Indian Bank.
Incorporated in 1994, IFML has so far launched 12 close-ended schemes and raised Rs 627.10 crore. Of the 12 schemes, nine schemes were redeemed on maturity dates. Three schemes – Ind Navratna, Ind Shelter and Ind Tax Shield – were transferred to Tata Mutual Fund during November 2001, according to the information available on the bank’s website.
Commenting on Indian Bank’s proposal to merge its housing finance subsidiary, Indbank Housing, with itself, Bhasin said that the bank’s board would take a final call on the same in another one week.
“It is taking more time as the court is yet to give an approval. The process is expected to be completed in another six months.” It may be noted that Housing and Urban Development Corporation Limited (Hudco) is one of the stakeholder in Indbank Housing.