Indiabulls Financial Services merges with its home loan arm

Indiabulls Financial Services (IBFSL) has merged with Indiabulls Housing Finance (IHFL) and the new entity will focus on mortgage business.

The merged entity has been registered as a Housing Finance Company (HFC) with the National Housing Bank and the share swap ratio among the stake holders in the two companies has been fixed at 1:1, a statement said on Friday.

"The amalgamation will enable efficient utilisation of the company's capital, consolidating it into the Housing Finance Company where most of the incremental mortgages business was being booked," Indiabulls Housing chief executive Officer Gagan Banga said.

This amalgamation underlines the company's long-term commitment to the mortgage finance business, he said.

"The Finance Minister P Chidambaram's budgetary proposal to allow additional tax deductions for the first time home buyers has given a new impetus to the real estate sector and we see this as a great opportunity for home loan companies to contribute to the nation's growth," Mr Banga said.

Going forward, IHFL plans to offer a wider range of innovative products on housing finance, especially for the affordable segment below Rs 25 lakh, he added.