India Infoline announced the approval of an equity investment of USD 76.7 million (approximately Rs 3 billion) into its consumer finance subsidiary India Infoline Investment Services (IIIS) by the Singapore-based investment institution Orient Global, which will acquire a 22.5% stake.
The capital will be primarily utilized for the expansion of IIIS`s subsidiaries, Moneyline, which is in the business of personal and auto loans, and India Infoline Housing Finance, which is in the business of home loans.
Moneyline will make use of the group`s expansive network of 600 branches to provide credit to a large segment of the populace which currently does not have access to organized credit. Moneyline plans for an active presence in 60 cities by the end of 2008. With a combination of decentralized distribution and service, supported by centralized risk management and back office operations, Moneyline aims to leverage technology to reduce costs, deliver superior service and offer a pleasant overall borrowing experience to the customer.
India Infoline Housing Finance plans to provide support for the growth of housing for the middle class in India; the company notes that the 10th Five-Year Plan estimates a shortage of 22 million dwelling units in India.
Nirmal Jain, chairman & managing director, India Infoline, said, “India Infoline Investment Services is delighted to have the support of Orient Global, a highly principled organisation that has an outstanding track record in financial services and has demonstrated a long-term commitment to India. The capital provided by Orient Global for the expansion of financial services is a major contributor towards economic development and prosperity in India today.“
Source: My Iris