Wednesday, July 29, 2009

Central Bank to raise stake in housing finance arm

State-run Central Bank of India plans to raise its stake in its housing finance arm Centbank Home Finance, a top official said here Wednesday.

The bank is planning to acquire the stakes of its two partners - Special Undertaking of UTI (SUUTI) and Urban Development Corp Ltd (HUDCO) - in Centbank Home Finance, S. Sridhar, chairman and managing director of Central Bank, said.

"We are planning to buy out the two partners but NHB (National Housing Bank) will remain," Sridhar told reporters on the sidelines of a programme.

SUUTI holds 9 percent in Centbank Home Finance while HUDCO has 16 percent and NHB has 16 percent.

At present, Central Bank holds a majority 59 percent stake in the housing company.

The restructuring is aimed at making the housing company supplement Central Bank's presence in home finance in a better way, Sridhar said.

"The change in stakeholding will happen in the next six months," he added.

The bank plans to raise Rs.700 crore through tier I capital and Rs.350 crore through tier II this current fiscal, Sridhar added.

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