IDBI Home Finance today said it has got approval from the Corporate Affairs ministry for merging with its parent IDBI Bank.
The Ministry of Corporate Affairs has sanctioned the scheme of amalgamation vide its order dated April 8, 2011, IDBI Home Finance said in a filing to the Bombay Stock Exchange.
The merger would help IDBI to consolidate its home loan business and gain more market share.
"The company, on April 13, 2011, has filed a copy of the said order with the Registrar of Companies (ROC), NCT of Delhi and Haryana and hence all the conditions... of the Scheme of Amalgamation have now been complied with," it added..
Pune-based IDBI Home Finance Ltd (IHFL) is a wholly owned home loan subsidiary of state-run IDBI Bank. In July last year the bank's board had approved the said merger.
IDBI Bank took over the erstwhile Tata Home Finance in September 2003 and renamed it as IHFL as a pure-play home loan player.
As of end March 2010,IHFL had an outstanding home loan portfolio of Rs 3,537 crore as against Rs 3,089 crore in FY09.