Canara Bank not to divest stake in Can Fin Homes due to low price quotation

State-owned Canara Bank has called off move to divest its entire shareholding in housing finance subsidiary Canfin Homes after receiving lower than expected price quotation.

"Since the quote received is not in tune with the valuation, Canara Bank has decided to call off divestment process of it entire stake in Canfin Homes Ltd (CFHL), which was under process," Canara Bank said in a regulatory filing.

However, it did not provide further details.

Can Fin Homes has a pan India network of 132 branches, 20 Affordable Housing Loan Centres (AHLCs) and 20 satellite offices with customer base of over 1.2 lakh.

In December 2017, Canara Bank informed stock exchanges that it will offload 4 per cent stake in Canfin Homes Ltd (CFHL). After the transaction, the bank's holding in CFHL would have reduced to 26 per cent.

However, later it informed that it has not accepted bids from empanelled merchant bankers and it will divest its entire stake in the company.