India-based ICICI Bank has abandoned its plans to sell its home loan subsidiary, ICICI Home Finance.
The bank was in talks with a non-banking finance company TPG Capital to divest its house loan arm. The deal is said to have been derailed as the companies failed to reach a consensus over the terms of the deal.
Now, ICICI Bank is planning to revive and expand the housing loan business to new regions.
There has been a significant increase in the growth in housing loan demands after the government unveiled ‘housing for all’ scheme, which is believed to be one of the reasons behind the ICICI Bank retaining its housing subsidiary.
Earlier this year, the bank’s rural head Anirudh Kamani has been appointed as the CEO of the home finance arm.
ICICI Home Finance has a capital of INR16bn ($240m) and a loan book of INR100bn ($1.5bn), reported The Hindu.
ICICI Home Finance chairman Anup Bagchi told the publication that the housing arm is currently present in nearly 400 locations across the country, which it intends to increase to 1,000 in the next one and half years.
Generally, ICICI Home Finance provides loans within the range of INR1m to INR1.2m.