Central Bank of India may buy out the stake of one of the partners in Cent Bank Home Finances Ltd, its housing finance subsidiary, where it holds a 59% stake.
?The possibility (of buying out other partner?s stake) is there,? bank chairman and managing director S Sridhar said. While he did not name the partner, he said, ?Some of the partners have showed their interest in selling out.? The process is likely to be completed in the next six months.
Indicating that there could be a change in equity holding pattern, Sridhar said Central Bank may increase its share in the company. At present, Central Bank has a 59% stake in the JV, while National Housing Bank (NHB) and HUDCO have 16% each among others. According to him, the housing finance division of other banks are performing well.
?Today there is resurgence in the finance market. That has not been captured properly,? he said. The home finance company, according will give Central Bank a lot of flexibility in areas like salary structures or computer systems, which it cannot do in banks. The bank is converting another subsidiary Centbank Financial & Custodial Services Ltd into a merchant banking company.