Canara Bank shares rises 1.23%, receives RBI approval to divest in insurance, mutual funds
The state-run lender eventually announced its plan to start the procedure of an IPO and assured that it would keep the stock exchanges notified of any material developments in this regard.
Canara Bank shares rises 1.23%, receives RBI approval to divest in insurance, mutual funds
State-owned Canara Bank has received the Reserve Bank of India’s (RBI) nod for a plan to divest the bank’s share in life insurance and mutual fund ventures.
“Reserve Bank of India vide its letter dated 5th December 2024 has accorded approval to our bank for divesting its shareholding in Canara Robeco Asset Management Company Ltd and Canara HSBC Life Insurance Company Ltd by 13 percent and 14.5 percent, respectively through Initial Public Offer (IPO),” Canara Bank stated on December 5 in a regulatory filing.
Moreover, the RBI has indicated that the bank should follow the deadline of October 31, 2029, to increase its ownership in these entities to 30 percent in compliance with the exemption given by the Government of India.
The state-run lender eventually announced its plan to start the procedure of an IPO and assured that it would keep the stock exchanges notified of any material developments in this regard.
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The company is a joint venture, with Canara Bank owning 51 percent of the shares, HSBC Insurance (Asia Pacific) Holdings holding 26 percent of the shares, and Punjab National Bank (PNB) having the remaining 23 percent of the shares.
Meanwhile, Canara Bank owns 51 percent of Canara Robeco Asset Management Company while Japan's Orix Corporation holding has the remaining shares in the AMC.
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