L&T Fin exits from City Union Bank

L&T Finance Holdings, through its subsidiary, has sold all its shares, worth Rs 183.4 crore, in City Union Bank (CUB).

CUB has its head office at Kumbakonam in east-central Tamil Nadu. L&T Vrindavan had 4.55 per cent stake in it, about 24.7 million shares. These were all sold, at Rs 74.25 a share.

The CUB stock closed 1.5 per cent lower on Friday, at Rs 71.5 per share on the BSE.

Other institutional investors in CUB with over one per cent were Life Insurance Corporation of India at 3.99 per cent and Morgan Stanley Asia Singapore at 1.01 per cent, according to the filing with BSE.

According to rating agency CARE Ratings, L&T Unnati Finance Limited was incorporated in June 2011 and subsequently its name was changed to L&T Vrindavan Properties Limited (L&TVPL). The company (L&T VPL) is a 100 per cent subsidiary of L&T Finance Holdings Limited.

L&T Finance Holdings was one of the entities which applied to Reserve Bank of India to set up a private bank. However, its bid was not accepted.

CUB's net profit grew eight per cent in 2013-14 to Rs 347 crore from Rs 322 crore in 2012-13. The total income for FY14 grew 16 per cent to Rs 2,847 crore from Rs 2,462 crore in FY13. Total advances grew six per cent from Rs 15,343 crore in FY13 to Rs 16,224 crore. Total deposits increased by eight per cent from Rs 20,305 crore at the end of March 2013 to Rs 22,017 crore as on March 31, 2014.

Larsen & Toubro Limited