Central Bank of India plans to exit housing finance subsidiary

State-run Central Bank of India is looking to sell its entire 64.40 per cent stake in its housing finance subsidiary - Cent Bank Home Finance (CBHFL), a top bank official said. The lender has floated a request for proposal (RFP) for appointing merchant bankers. The shortlisted bankers will help the lender scout for a potential investor to buy its stake in the mortgage financier. "We plan to exit from Cent Bank Home Finance. The bank already provides housing loans, and so, we feel that there is no need to have a housing finance subsidiary," Central Bank of India managing director and chief executive officer, Pallav Mohapatra, told. The bank holds 64.40 per cent in the unlisted housing finance company, while the remaining stake is held by Housing & Urban Development Corporation (HUDCO), Unit Trust of India (UTI) and National Housing Bank (NHB). The bank is facing operational curbs under the Reserve Bank's (RBI) prompt corrective action (PCA) framework.