Indbank Housing Ltd., a subsidiary promoted by **Indian Bank**, is currently in a terminal operational phase. Following decades of financial distress and the recent cancellation of its regulatory licenses, the company has transitioned from a recovery-led revival strategy to a formal **winding-up process**. --- ### **Regulatory Status & The Transition to Liquidation** The company’s status as a functional financial entity effectively ended in late 2023. After failing to meet the **minimum Net Owned Fund (NOF)** requirements and sustaining losses for over two decades, the company faced decisive regulatory action. * **License Cancellation:** The **Reserve Bank of India (RBI)** cancelled the company’s **Certificate of Registration (CoR)** for Housing Finance on **September 21, 2023**, under Section 29A (6) of the **National Housing Bank (NHB) Act, 1987**. * **Surrender of Credentials:** The original **CoR** was formally surrendered to the **RBI Chennai Regional Office** on **September 27, 2023**. * **Board Resolution for Winding Up:** On **November 4, 2023**, the Board of Directors provided in-principle consent to wind up the company under **Section 271 of the Companies Act, 2013**. * **Cessation of Business:** Management has confirmed that no new Housing Finance Institution (HFI) or Non-Banking Financial Institution (NBFI) business has been conducted since the license cancellation. Fresh lending has remained suspended since the year **2000**. --- ### **Financial Position & Capital Erosion** The company’s balance sheet is characterized by a deeply negative net worth and a total erosion of capital. While the **Paid-up Share Capital** remains at **Rs. 10.00 Crore**, it is overwhelmed by massive accumulated losses. #### **Three-Year Financial Trend** | Particulars (As on 31st March) | 2024 (Actual) | 2025 (Projected/Est.) | 2026 (Projected/Est.) | | :--- | :--- | :--- | :--- | | **Paid-up Share Capital** | **Rs. 10,00,00,000** | **Rs. 10,00,00,000** | **Rs. 10,00,00,000** | | **Reserves & Surplus** | **Rs. 5,83,16,773** | **Rs. 5,83,16,773** | **Rs. 5,83,16,773** | | **Accumulated Losses** | **(Rs. 136,39,88,698)** | **(Rs. 136,70,59,330)** | **(Rs. 136,79,43,608)** | | **Total Net Worth** | **(Rs. 120,56,71,925)** | **(Rs. 120,87,42,557)** | **(Rs. 120,96,26,835)** | **Key Performance Indicators:** * **Net Loss:** The company reported a net loss of **Rs. 30.71 Lakhs** for FY 2024-25 and **Rs. 8.83 Lakhs** for FY 2025-26. * **Capital Adequacy Ratio (CAR):** The CAR is severely non-compliant. Against a regulatory minimum of **12%**, the company’s ratio stood at **(418,636)** in 2024 and deteriorated further to **(520,336.86)** by March 2025. * **Debt Obligations:** Total debt is frozen at **Rs. 129.00 Crore**, consisting entirely of a term loan from the promoter, **Indian Bank**. Notably, no interest has been charged on this loan since **April 1, 2017**. A previous proposal to convert this debt into **Compulsorily Convertible Preference Shares (CCPS)** was rejected by the **RBI**. --- ### **Legacy Asset Recovery & Litigation Status** With active lending suspended, the company’s sole operational focus is the realization of legacy assets through the **SARFAESI Act (2006)** and other legal channels. **Current Litigation Portfolio (as of late 2024):** * **Inter-Corporate Deposits (ICD):** **Rs. 2.69 Crore** to **Rs. 2.75 Crore** involved across 2–4 cases. * **Project Loans:** **Rs. 6.71 Crore** involved in a single major litigation case. * **Individual Loans:** **Rs. 0.39 Crore** involved across **24 active suits** (out of a total of 30 cases valued at **Rs. 0.42 Crore**). * **Public Deposits:** Almost all deposits have been repaid. A residual amount of **Rs. 6,33,090** remains unpaid only because it is withheld under specific directions from the **CBI Anti-Corruption Branch**. **Asset Quality Note:** The company does not utilize the **Expected Credit Loss (ECL)** model under **Ind AS 109**. Instead, it maintains nearly **100% provisioning** on its long-overdue portfolio. --- ### **Governance & Promoter Support** Despite its non-operational status, the company maintains a formal governance structure in compliance with **SEBI (LODR) Regulations, 2015**, though it is exempt from certain requirements due to its low paid-up capital (under **Rs. 10 Crore**). * **Promoter Integration:** The company is heavily dependent on **Indian Bank**. The **Managing Director** is a deputed official from the promoter bank and receives no remuneration from Indbank Housing. * **Board Composition:** * **1 Managing Director** * **2 Non-Executive Nominee Directors** (including **Shri Shiv Bajrang Singh** and **Shri A. Sivasankar**) * **3 Non-Executive Independent Directors** (including **Ms. V. Rajalakshmi**, an expert in Insolvency and Valuation). * **Operational Leanness:** The company functions with a minimal staff, primarily a **Company Secretary** and personnel deputed from the promoter bank. --- ### **Risk Factors & Material Uncertainties** Investors should note the following critical risks that underscore the company's "Going Concern" uncertainty: * **Terminal Status:** The Board has formally moved toward **winding up**. The primary objective is now asset rationalization, debt slashing, and shoring up liquidity for final exit. * **Internal Control Deficiencies:** The company admitted to the absence of an established **Internal Audit System** for the **2024-25** period, a violation of **Section 138** of the Companies Act. * **Audit Warnings:** Auditors consistently issue a **"Material Uncertainty Related to Going Concern"** notice due to the negative net worth and license cancellation. * **Taxation Contingency:** A rare liquidity upside occurred on **March 18, 2026**, when the company received a "Giving Effect Order" for a tax refund of **Rs. 8,79,04,379** (including interest) related to **Assessment Year 1999-2000**. --- ### **Strategic Outlook** While the company previously monitored the **Affordable Housing** and **Green Building** sectors (Tier-II/III cities) for a potential restart, these plans are currently dormant. The current trajectory is focused exclusively on: 1. **Asset Realization:** Aggressive recovery of the remaining **Rs. 9.79 Crore+** under litigation. 2. **Liquidation:** Executing the legal and statutory requirements to dissolve the entity. 3. **Shareholder Value:** Maximizing the recovery of funds to offset the **Rs. 129 Crore** liability to **Indian Bank** and other stakeholders during the winding-up process.