Indiabulls Housing Finance on Friday confirmed that Japan’s internet conglomerate Softbank is going to invest 2,800 Crore as equity capital in its UK based, Private Commercial Bank-OakNorth.
The Fresh capital investment in OakNorth Bank will take the total equity capital to Rs 7,000 Crore, Indianbulls Housing Finance said in a stock exchange filing.
IndiaBulls also said that the OakNorth is the fastest growing new Bank in the Europe, making use of technology tools for faster and efficient disbursal of loans to small and medium-sized enterprises(SME) sector. Although the OakNorth Bank has no physical branch its only a “digital bank”.
OakNorth Bank stated that it would use the fresh investment to roll-out its lending operations in United States.
Last year, Indiabulls Housing Finance sold a part of its holding to Singapore’s government for Rs 900 Crore. The current loan book of OakNorth is Rs 21,390 crore and the bank has no delinquencies as on date, Indiabulls said.
OakNorth Bank is a small private commercial bank in UK with no Physical Branch. It lends short terms loans to small and medium businesses and is a fast growing “digital lender” in t UK. The Bank is now Planning to start operations in US too.