BHW Birla Home seeks minority ally

BHW Birla Home Finance, a wholly owned subsidiary of Germany's largest retail finance group BHW Holding AG, is open to induct a minority partner. The company had acquired K K Birla group's 50 per cent stake in the home finance outfit a few months ago.

Ralph Haerke, managing director, BHW Birla Home Finance, said the firm was keen to offload a minority stake to an Indian partner. The partner, he added, might be a bank or an individual.

Also, the German gaint is toying with the idea of acquiring a mid-sized housing finance company. "We are open to buy home loan portfolios too," Haerke said.

According to him, the proposed offload of a minority stake is on the agenda on the German group but not a top priority.

"At the moment, we are more focussed on expansion so that we can grab a three to five per cent share in the home finance market in next five years," Haerke added.

BHW group, with a 75 year-old tradition in housing finance, has a retail portfolio worth Rs 2,75,000 crore. Going by the local regulations, a foreign player owning 100 per cent of a non-banking finance company needs to bring in $50 million. Bulk of it has alrady been brought in by the German parent.