Mumbai: Central Bank of India is planning to sell off its housing finance subsidiary Cent Bank Home Finance Ltd.
The bank has hired ICICI Securities as merchant banker to identify a buyer. "We have identified the housing finance company as a non-core business so we will sell it off. ICICI Securities has been appointed to find a buyer. The bank is booking home loans in its portfolio so there is no need to replicate the business," a senior bank official said. The bank has booked about Rs 500 crore of home loans in this subsidiary.
Cent Bank Home Finance Ltd is a registered housing finance company with National Housing Bank. It was incorporated as Apna Ghar Vitta Nigam Ltd and later rechristened as Cent Bank Home Finance Ltd. It commenced operation on June 18, 1991. The other share holders in CBHFL are Housing & Urban Development Corporation (HUDCO), Unit Trust of India (UTI), and National Housing Bank (NHB).