Non-banking finance company Indiabulls Housing Finance Limited sold its stake in UK-based OakNorth Holding, a parent company of OakNorth Bank.
Indiabulls Housing Finance had picked a 40 per cent stake worth Rs 663 crore in OakNorth Bank in November 2015. The bank was launched in September 2015. With the first major investment from Indiabulls Housing in 2015, the bank started addressing the mid-market funding gap in the UK, a business similar to Loans against Property business that Indiabulls Housing has done very successfully.
The company informed the exchange that its plans to conclude few other transactions on the partial stake sale in OakNorth Bank over the next few days. “The divestments in OakNorth Bank will result in boosting CRAR and shall free up capital to grow the loan book of the Company.”
OakNorth Bank became profitable in just 11 months, and within four years of operations has grown its deposits to just under 3 billion pound and has lent over 4 billion pound since its launch.