Central Bank of India sells stake in housing finance biz

The PSU bank has entered into a binding agreement to divest its entire 64.40% stake in Cent Bank Home Finance to Centrum Housing Finance.

"This is to inform that the bank has entered into a binding agreement to divest its entire equity stake of 64.4% i.e. 1,61,00,000 shares of face value of Rs 10 each in Cent Bank Home Finance to Centrum Housing Finance, subject to approvals from regulatory authorities," Central Bank of India said in a regulatory filing on Thursday (24 December 2020).

According to a separate filing by Centrum Capital, the parent of Centrum Housing, the cost of acquisition is about Rs 160 crore. The company said the deal was expected to close in about 2-3 months.

Cent Bank Housing Finance is a financing and mortgage firm jointly promoted by Central Bank of India, National Housing Bank, Specified Undertaking of Unit Trust of India and Housing and Urban Development Corporation.

The company's assets under management stood at Rs 1,211.70 crore as of 30 September 2020 while its total income was Rs 65.81 crore.

Shares of Central Bank of India were up 1.37% at Rs 14.05 while Centrum Capital was up 4.95% at Rs 16.95 on BSE.

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