Joining Forces

Image courtesy of Sanjeewa Dayarathne (www.Feedback.lk)

Sept 04 (LBO) – NDB Bank said Monday that it had picked up a balance 70 percent stake in NDB Housing Bank, following Central Bank approval.

NDB Bank held a 30 percent stake in the housing loan subsidiary, with the balance held by International Finance Corporation (IFC) and Housing Development Finance Corporation of India (HDFC India).

The Central Bank approved the purchase of the balance shares by NDB Bank, the group said in a statement.

The merger will allow the bank to market home loans more effectively through the NDB Bank branch network, NDB Bank Chairman S. K Wickremasinghe said in a statement.

The merger will also allow the housing division to tap into a wider customer network, for home loans, including non-resident Sri Lankans employed abroad, professionals and employees of private companies.

Loans can be obtained for construction, extension, and purchase of a house, home improvement or to purchase land through any of NDB Bank’s 27 branches in Colombo, suburbs and provincial towns.

NDB Housing Bank has a housing loan portfolio of two billion rupees.

In August last year National Development Ba