Canara Bank expects to raise around Rs 1,000 crore by offloading its entire 30% stake in mortgage lender Can Fin Homes.
Canara Bank expects to raise around Rs 1,000 crore by offloading its entire 30% stake in mortgage lender Can Fin Homes. The bank has received bids from 12 “serious investors” for its stake in the housing finance company (HFC), RA Sankara Narayanan, MD & CEO, Canara Bank, told reporters on Wednesday.
“Many foreign as well domestic entities have approached. Twelve serious investors have showed interest. There are many entities, including other NBFCs (non-banking financial companies), who are showing interest,” Narayanan said on the sidelines of the Indian Banks’ Association’s (IBA) 72nd annual general meeting.
The bank also expects to receive Rs 6,500 crore from the government in a month’s time. It is set to acquire Syndicate Bank, which is also based in Canara’s home state of Karnataka. The amount received as infusion from the government and the proceeds from the sale of stake in Can Fin Homes will both be used to drive credit growth, Narayanan said.
Canara Bank had sought bid for its 30% stake in Can Fin Homes on September 6.
The authorised share capital of Can Fin Homes is Rs 70 crore and its paid-up share capital is Rs 26.64 crore.
Can Fin Homes is registered with the National Housing Bank. It offers products such as loans for home purchase, home construction, home improvement or extension and site purchase as well as financing unrelated to housing, like loan against property (LAP), loan against commercial properties (LCP), personal loans, loans against rent receivables, loans to children’s education (LCE) and flexible LAP. The company has a pan-India presence with a network of 154 branches, as on June 30.
“Being a company based out of the south, 70% of its branches are located in southern India and the remaining 30% in northern India,” Canara Bank said in the recent bid document. Can Fin Homes is also licensed to accept deposits from the public. The deposit schemes of the company are rated ‘MAAA’ by Icra.