BoB to buy stake in CBHFL
Looking to strengthen its position in the home loan segment, Bank of Baroda (BoB) is in talks to buy a majority stake in Cent Bank Home Finance (CBHFL), the housing finance subsidiary of Central Bank of India. According to sources, BoB has appointed SBI Capital Markets, while Central Bank has engaged a couple of merchant bankers including IDBI Capital as advisors.
CBHFL was incorporated as Apna Ghar Vitta Nigam and was subsequently renamed as Cent Bank Home Finance. It began operations in June 1991. The deal is part of Central Bank’s attempt to shore up its bleeding balance-sheet, which has been mauled by mounting bad loans since the past few years. The cash-strapped government had earlier this year asked its banks to sell noncore assets to beef up core capital.