Centbank Home Finance To Buyout Its Partners
Central Bank Of India
Central Bank of India has plans for raising its stake in its housing finance arm Centbank Home Finance.
According to Centbank Home Finance, S. Sridhar, chairman and managing director of Central Bank, the bank will be acquiring Special Undertaking of UTI and Urban Development Corp Ltd.
"We are planning to buy out the two partners but NHB (National Housing Bank) will remain," Sridhar told reporters on the sidelines of a programme.
As of now SUUTI holds 9% in Centbank Home Finance while HUDCO has 16% and NHB has 16%. At present, Central Bank holds a majority 59% stake in the housing company.
The restructuring is targeted to make the housing company supplement Central Bank's presence in home finance in a better way.
"The change in stakeholding will happen in the next six months," he added.
The bank plans to raise Rs.700 crore through tier I capital and Rs.350 crore through tier II this current fiscal, Sridhar added.