New Delhi: Central Bank of India plans to get out of home financing business by offloading its entire 64.40 percent equity its ‘Cent Bank Home Finance’.
While the majority stake in Cent Bank Home Finance (CBHFL) is held by Central Bank, the rest of the equity is held by Unite Trust of India, Housing & Urban Development Corporation and National Housing Bank.
Central Bank has come out with a request for proposal for appointing merchant bankers for the sale of its equity. The selected bankers will help Central Bank look for a buyer.
Central Bank is currently on curbs under the Reserve Bank’s prompt corrective action guidelines.
In 2016 also, the Bank had tried to offload its stake in CBHFL. The process could not be competed then. For the financial year 2018-19, the net profit of CBHFL stood at Rs 16.28 crore. Its net owned fund stood at Rs 112 crore.