Mumbai, July 02: Dewan Housing Finance Corporation Ltd (DHFL) on Wednesday took a majority stake in the Bangalore-based housing arm of Vysya Bank for an undisclosed amount. The Mumbai-based private housing finance company acquired 85.91 per cent stake in Vysya Bank Housing Finance Ltd (VBHFL), which will become its subsidiary but will continue to function as a separate identity, DHFL chairman Kapil Wadhawan said.
DHFL had initiated the process of acquiring an equity stake early this year in VBHFL, which has a total asset base of Rs 200 crore and home loan customer base of about 7,500, majority in the retail segment.
Wadhawan said the acquisition formalities have been completed and DHFL was set to take control over the management, he said adding, this acquisition would help DHFL to consolidate and add synergy to increase its penetration in niche markets.
The former managing director of PNB Housing Finance, R Nambirajan, would head the operations of the subsidiary with Wadhawan as the non-executive chairman, the release added.
Bureau Report