BANKING

Chemical Banking Sells Portion of CIT Stake: The New York-based institution sold 20%, or half its stake, of finance company CIT Group to Dai-Ichi Kangyo Bank for about $430 million. The transaction, along with the recently completed sale of most of the bank’s New Jersey branches to PNC Bank Corp. for $490 million, will generate about $1 billion for Chemical Banking Corp. to invest elsewhere. Chemical expects to use the money to buy back stock after it merges with Chase Manhattan Corp. next year, a spokesman said. The sale leaves Chemical with a 20% stake in CIT, and Dai-Ichi Kangyo, one of Japan’s biggest banks, owns the rest. Dai-Ichi Kangyo has an option to buy out Chemical within five years. If it does not exercise the option, Chemical can sell its stake to the public, Chemical said.