BNP Subsidiary Acquires 49.9Pc Stake In Sundaram Home Finance

Chennai: Union de Credit pour le Batiment SA (UCB) will pay Rs 196.98 crore to buy 49.90 per cent stake in Sundaram Home Finance Ltd, a arm of Sundaram Finance Ltd. UCB, a arm of the Paris-headquartered international bank BNP Paribas SA, specialises in mortgage financing. UCB will purchase the stake via an agreement with Sundaram Finance. Of the total buy value, Rs 146.98 crore will go to Sundaram Finance and Rs 50 crore will be infused in Sundaram Home Finance. The joint venture will combine the strength of the Sundaram Finance brand, the extensive distribution reach and retail credit management with the specialised housing finance skills of UCB and the global brand strength of BNP Paribas. The release that the mortgage market in India is driven by the housing needs. The partnership will contribute to the growth of domestic housing finance industry. The joint venture with Sundaram Housing is its first outside Europe.