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.