Canara Bank on Saturday called of divestment process of bank’s entire stake in Can Fin Homes which was under progress. In a regulatory filing, the public sector bank informed that the call-off decision has been made after the quotes it received were not in tune with the valuations it sought. “Since the quote received is not not in tune with the valuation, Canara Bank has decided to call off the divestment process of its entire stake in M/S Can Fin Homes Ltd., which was under progress,” the bank said in a BSE filing.
Canara Bank Ltd. stock closed at Rs 263.55 down 1.95 percent on NSE on Wednesday. The PSU bank was planning to divest 30 percent stake in Can Fin Homes. Investment banks namely Jefferies, ICICI Securities, EY and JM Financial were appointed by it for the divestment process.
The net profit of Canara Bank plunged 61 percent to Rs 126 crore in the December quarter of FY18 due to higher non performing assets (NPAs) provisions and mark to market loss that the lender has incurred due to hike in bond yields. The bank reported a net profit of Rs 322 crore a year back. The provisions and contingencies increased by 80 percent to Rs 2,673.6 crore for the December quarter as against Rs 1,484.5 crore provided during the corresponding quarter of last fiscal year.