Canara Bank gets 12 EoIs for stake sale in Can Fin Homes

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MUMBAI: State-run Canara Bank on Wednesday said it has received an expression of interest (EoIs) from 12 entities to buy the entire stake in its housing finance arm Can Fin Homes (CFHL).

The lender, which owns 29.99 per cent stake in the home financier is looking to raise over Rs 1,000 crore from the stake sale, its managing director and CEO R A Sankara Narayanan.

“Many foreign as well domestic entities have approached us (for buying a stake in CFHL). Of them, 12 serious investors have shown interest. There are many entities including other NBFCs that are showing interest,” Narayanan told reporters on the sidelines of 72nd annual general meeting (AGM) of Indian Banks’ Association.

The 12 entities will now have to present the financial bids, he said.

Narayanan said he expects the process to get over by next month.

The lender has invited the EOI for selling sale its the mortgage financier on September 6, 2019.

The housing finance company has 159 branches, 21 affordable housing loan centres (AHLCs) & 14 satellite offices spread across the country.

The government has recently merger of Syndicate Bank with Canara Bank.

Narayanan said the bank’s board is meeting on September 13 to approve the merger.

The government also announced a capital infusion of Rs 6,500 crore in the bank.

He said the proceeds from the stake sale in housing finance and the capital infusion from the government will be utilised for growth.

In the quarter ended June, Canara Bank reported a 17 per cent jump in its net profit at Rs 329 crore from Rs 281 crore in the year-ago period.

The lender’s gross NPA improved to 8.77 per cent from 11.05 per cent and net NPA to 5.35 per cent from 6.91 per cent.

Source: Press Trust of India