French
bank BNP Paribas today disclosed that it would acquire a 49.9-per cent stake in
Sundaram Home Finance Ltd for Rs197 crore ($48.2 million through its wholly owned
Union de Credit pour le Batiment (UCB). "Our
mutual fund JV with BNP has been doing quite good and profitable for about two
years now, so we decided to extend it to home finance," said T.T. Srinivasaraghavan,
managing director at Sundaram Finance. Sundaram Finance Ltd. will hold the remaining
50.1 percent stake in Sundaram Home Finance. Laurent
Chouraki, chief executive, UCB, said, "A partnership with a strong and reliable
local partner such as Sundaram Finance group will enable us to participate in
the development of the housing finance industry." Europe''s
second largest bank by market value, BNP Paribas has an asset management joint
venture with the Sundaram group, the parent
of Sundaram Home Finance. It also has a presence in the life insurance sector
with, State Bank of India. In March, this year, it bought 27-per cent stake in
stockbroking and finance company, Goejit Financial Services Ltd.
|