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Indiabulls Housing Finance plans divestment of OakNorth Bank

Capital Market 

Indiabulls Housing Finance is in the process of exploring various options in connection with the partial divestment of its equity shareholding in OakNorth Bank, in one or more tranches.

The divestment shall result in boosting CRAR and shall free up capital to grow the loan book of the Company.

The Company had invested Rs 663 crore in November 2015 for a 40% stake in the bank. Within two years of this, in November 2017, the Company recouped its investment by selling ~10% of the bank to Government of Singapore owned investment arm GIC for Rs 770 crore.

Founded in 2015 to address the mid-market funding gap in the UK, a highly competitive and regulated market, OakNorth Bank became profitable in just 11 months, and within four years of operations has grown its deposits to just under 3 billion and its loan book to over 4 billion.

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(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

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First Published: Wed, September 09 2020. 18:16 IST