Canara Bank plans to raise up to Rs 5,000 crore by end of first half of FY19
(But not by selling stake in Canfin homes, which looks to be happening only next fiscal)
In March end, Canara Bank had called off the stake sale in Can Fin Homes after bid offers by several interested entities were not in tune with the expected valuation. Sharma said the offer was above market price but below our expectation as we have an 8-10 percent “management premium” which the bidders did not agree to.
“We have now posted a full-time deputy managing director to strengthen the company further, improve its performance, profitability and accordingly give value to the shareholders… Also, because we are sufficiently well capitalized, we do not have the urgency to sell off that subsidiary but will look at other smaller businesses,” Sharma further elaborated.