Canara Bank to sell stake in its housing finance arm

The Government of India promoted Canara Bank is expected to sell its stake in its housing finance arm Can Fin Homes. The bank would be able to raise Rs 716 crore from the sale. Currently, Canara Bank holds promoters’ stake of 43.45% as on Q3FY17, same as Q2FY17. Moreover, Can Fin Homes witnessed rise of 0.64 per cent stake by Canara Robeco Mutual Fund during Q3FY17. The said stake sale was proposed to Can Fin Homes earlier on February 13, 2017. The government is in the practice of mandating stake sale of the PSU banks through non-core assets.

The board has approved 13.45 per cent stake sale in Can Fin Homes which will bring down the stake to nearly 30.65 per cent. The bank has fixed the base price of Rs 2,000 per share for Can Fin Homes. The last date for the bid will be March 1, 2017. Along with Can Fin Homes, Canara Bank is expected to sell 70 per cent stake in CanBank Factors, an unlisted public sector bank.

The stock of Can Fin Homes and Canara Bank are expected to remain in the limelight with the news. The stock of Can Fin Homes is trailing near its all-time high level of Rs 2080 made during first week of February 2017.