Indian private sector lender ICICI Bank is planning to sell stake in its housing finance unit, ICICI Home Finance Company to investors including private equity funds.
The bank is looking to fetch INR44bn (nearly $700m) by selling the stake, The Economic Times reported citing unnamed sources.
The bank has roped in Citibank to find potential suitors for the business, which focuses on home loans in smaller cities and contributes around 10% of the book value of total home loans given by ICICI.
A spokesperson from the bank said: "ICICI Bank keeps receiving enquiries from time-to-time from interested parties regarding its stake in ICICI HFC but has not taken any decision to sell its stake in this company."
ICICI Home Finance is a non-bank financial company, due to which the deal will require the nod of the Reserve Bank of India.