Indiabulls Housing to buy 40% in UK bank for nearly Rs 660 crore

Indiabulls Housing Finance has said it will acquire a 39.76% stake in the UK's OakNorth Bank for $100 million (about Rs 661 crore).

The company said the acquisition will help it chart a roadmap to a deposit-taking franchise.

"Pursuant to all applicable regulatory approvals from relevant regulators in lndia and the UK... Indiabulls Housing Finance Ltd' is investing $100 million for 39.76% stake in OakNorth Bank, a licensed UK commercial Bank... the company will be the largest shareholder in the bank," Indiabulls Housing Finance said in a regulatory filing.

It further said: "Sameer Gehlaut, Chairman of the company, will be investing in his persona| capacity up to 10% stake in OakNorth Bank at the same valuation." Indiabulls Housing Finance said the investment has been identified and approved by the Strategic Investment

Committee for Liability Franchise Development headed by K C Chakrabarty, an independent director on the Board and ex-Deputy Governor of the Reserve Bank of India, specially constituted by the Board for the purpose of creating a practical roadmap to a deposit-taking franchise.

It further said: "Investment in OakNorth Bank will benefit the company with a global platform for building its track record of a deposit franchise in a highly regulated market.