Central Bank of India cancels agreement to sell stake in housing finance subsidiary

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State-owned Central Bank of India on Wednesday said it has cancelled an agreement to sell its stake in housing finance subsidiary to Centrum.

In December, the bank had entered into a binding agreement to divest its entire equity stake in Cent Bank Home Finance Limited (CBHFL) to Centrum Housing Finance Limited, subject to approval from regulatory authorities.

"We now inform that the Long Stop Date of the share purchase agreement being March 31 2021 has lapsed. Therefore, the said binding agreement/ share purchase agreement stand rescinded with effect from April 1, 2021," the bank said in a regulatory filing.

CBHFL is a financing and mortgage company jointly promoted by four public sector institutions — Central Bank of India, National Housing Bank, Specified Undertaking of Unit Trust of India (SUTTI) and Housing and Urban Development Corporation (HUDCO).

The company, where Central Bank of India holds 64.40 percent stake, had assets under management of Rs 1,211.70 crore as of September 30, 2020.

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