New Delhi, Dec 10: Having achieved the restructuring plan targets with the first tranche of Rs 1,300 crore from the Government, Indian Bank hopes to get the second soon and plans to merge its housing subsidiary latest by next fiscal. Armed with the Securitisation Bill, the Chennai-based bank has slapped notices on 500 willful defaulters for recovering a "sizeable" amount.

"We will be able to merge it (housing subsidiary) with the bank by March or latest by June," Indian Bank chairperson Ranjana Kumar said here.

The move follows the recommendation by the Working Group on Restructuring Weak Public Sector Banks, headed by M S Verma, that Indian Bank should become a stand-alone entity by shedding its subsidiaries.
The bank official, however, did not disclose the details regarding the bad loans of the housing finance arm. Bureau Report