Indian public-sector lender Canara Bank has received expression of interest from 12 entities to acquire its 29.99% stake in its housing finance arm.
The bids came after the bank’s publicly solicited expressions of interest (EoIs) for its entire stake in Can Fin Homes.
In a regulatory filing, Canara Bank said that it will sell 3.99 million equity shares to shed its interest in the housing finance arm.
The lender expects to raise around INR10bn ($140.2m) through this divestment and use the capital to boost its growth capital and capital adequacy ratio.
Speaking to the local media houses, Canara Bank MD and CEO Sankara Narayanan said that the bank has received applications from foreign players as well as local non-banking finance companies.
Narayanan was quoted by the Livemint as saying: “Many foreign as well domestic entities have approached. 12 serious investors have shown interest. There are many entities including other non-banking financial companies (NBFCs) who have shown interest.”
If the deal materialises, it will mark Canara Bank’s exit from the housing finance business.
Headquartered in the city of Bangalore, Can Fin Homes provides housing and non-housing loans to individuals. Overall, it has 194 outlets across the country including 159 branches, 14 satellite offices and 21 affordable housing loan centres.
The move comes barely weeks after the Indian Government announced a mega-merger of the public sector banks. The plan includes combining Syndicate Bank with Canara Bank.