NDB Bank acquires NDB Housing Bank

The Central Bank has approved the merger between NDB Housing Bank and NDB Bank after the bank purchased all shares held by outsiders.

NDB Bank said it had a 30 percent ownership in NDB Housing Bank while the balance 70 percent was owned by International Finance Corporation (IFC) and Housing Development Finance Corporation of India (HDFC India). The Central Bank subsequently approved the purchase of the balance shares by the NDB Bank.

NDB Bank Chairman S. K. Wickremasinghe said that it will result in a more focused effort to market home loans through the NDB Bank branch network. "The consumers will benefit immensely with home loans being offered through the wide branch network of the Bank," he said in a press release.

With the merger, the Bank will cater to the housing needs of a wide range of customers. Employees of corporates, professionals, self-employed businessmen and even non-resident Sri Lankans who are employed abroad will be able to make use of the Home Loan facility. Home loans will be structured according to the needs of each individual customer. Customers could borrow as much as they can if the repayment capacity permits. These loans can be obtained for construction, extension, purchase of a house, home improvement or to purchase land. Interest will be calculated monthly on the reducing balance, the statement said.

This is the second merger of NDB Bank for the past 13 months. In August 2005 National Development Bank and NDB Bank Ltd (former ABN Amro Bank) merged to form NDB Bank with combined assets totaling Rs.60 billion, making it the fifth largest bank in terms of assets.