IDBI Bank to sell home loan arm

Leading lender IDBI Bank has decided to sell its housing loan subsidiary, IDBI Homefinance (IHFL), unlike its earlier plan to merge the unit with itself, and may invite bids from potential buyers soon, a top bank executive has said.

The move will be aimed at consolidating its home loan finance business, which is currently being rolled out through the bank’s own housing finance division and its wholly-owned subsidiary, IHFL, based in Pune.

However, given the present market downturn, the unit is unlikely to get an expected market valuation.