Canara Bank asset sale: New non-performing assets rules offset gains

Bank has to contend with additional slippages of Rs 20-25 billion

Several banks are looking at selling their non-core assets to clean their balance sheets. Canara Bank, too, is selling its entire (30.4 per cent) stake in the housing finance company, Can Fin Homes (CFH), for which the bank has received commercial bids. 

The company’s executive director P V Bharathi has confirmed the development and expects the process to be completed by March 31.

While the management expects CFH to receive higher valuations than its current market capitalisation, experts are sceptical.

“The price-to-book value of CFH (5.48) is still very high and no one is expected to pay premium to the