The Reserve Bank of India (RBI) has given Ind Bank Housing Ltd. till the end of December 2021 to complete its resurrection process and submit a board-approved plan. With a 51 percent interest in Ind Bank Housing Ltd., the state-owned Indian Bank is the company's promoter.
"RBI has granted us till 31 December 2021, to complete the company's revival process and submit a board-approved plan for revival," Ind Bank Housing said in a regulatory filing on Friday.
The firm reported a net loss of Rs. 6.36 lakh in the quarter ending June 2021, up from a loss of Rs. 4.38 lakh the previous year. During the year, the company's total revenues were Rs. 6.39 lakh, down from Rs. 8.33 lakh the previous year. Ind Bank Housing announced in its annual report for 2019-20 that it has put in place an aggressive recovery strategy for current house loans. According to the report, it has only one direct employee as of 31 March 2020, with the rest working on a contract basis or being delegated from the parent company.
The firm made a net loss of Rs. 18.87 lakh in 2020-21. The firm had a profit of Rs. 2.74 crore in FY20. The company's cumulative losses as of 31 March 2020, after appropriating the profit, were Rs. 134.83 crore, down from Rs. 137.58 crore a year before, according to its annual report. Ind Bank Housing stated it is working to resurrect its activities and has created a road plan for capital restructuring and lending operations resumption. The attempts, however, have been hampered by the COVID-19 issue, according to the report.