Central Bank of India will divest a part of its stake in its subsidiary Cent Bank Home Finance Ltd via an initial public offer in the third quarter of FY2016, according to a top official.

The public sector bank owns 64.40 per cent stake in the housing finance company. The other shareholders in the company are: National Housing Bank (16 per cent), Unit Trust of India (12.80 per cent), and Housing & Urban Development Corporation, (6.80 per cent).

BK Divakara, Executive Director, Central Bank of India, said the IPO will go through once the other shareholders agree on the valuation.

Last year, Central Bank of India had infused Rs 4.20 crore in Cent Bank Home Finance.

CBHFL was incorporated in 1991 with the name ‘Apna Ghar Vitta Nigam Ltd.’ Later in 1992 the name of company was changed to ‘Cent Bank Home Finance Ltd.’

The company focuses on providing housing loans to individuals in Tier-II and Tier-III cities of India. It has 18 branches in seven states and one Union Territory.

As per provisional results for FY15, CBHFL has reported a total operating income of Rs 83.22 crore with a net profit of Rs 12.11 crore, said a Care Ratings report on the subordinated debt issue of CBHFL.

CBHFL had a loan book of Rs 800.46 crore as on March 31, 2015. The company reported Capital Adequacy Ratio of 17.07 per cent as on March 31, 2015, the report said.