Banking regulator Reserve Bank of India (RBI) has given its nod to Canara Bank to divest its shareholding in Canara Robeco Asset Management Company Ltd and Canara HSBC Life Insurance Company by 13% and 14,5% respectively through Initial Public Offer (IPO).

In its filing to the exchanges on Thursday, the state-lender informed about receiving a letter from RBI on the same. Further, the Indian central bank has intimated the

Canara Bank that it is required to adhere to the October 31, 2029 timeline for bringing its stake in these entities up to 30% in accordance with the exemption granted by the Government of India.

Canara Bank said that it will initiate the process of IPO and will keep the exchanges informed about the material developments in this regard.

Canara Robeco Mutual Fund is the second oldest Mutual Fund in India, established in December 1987 as Canbank Mutual Fund. Subsequently, in 2007, Canara Bank partnered with Robeco (now a part of ORIX Corporation, Japan) and the mutual fund was renamed as Canara Robeco Mutual Fund. Its solutions offer a range of investment options, including diversified and thematic equity schemes, hybrid and monthly income funds and a wide range of debt and treasury products.

Established in 2008, Canara HSBC Life Insurance Company is a joint venture

promoted by Canara Bank (51%) and HSBC Insurance (Asia Pacific) Holdings Limited (26%). Punjab National Bank (PNB) is also a shareholder of the company, holding 23% as an investor. One of the major bancassurance-led insurance companies, it has its head office at Gurugram, Haryana with more than 100 branch offices PAN India.

Shares of Canara Bank today ended at Rs 108.30 on the NSE, down by Rs 0.33 or 0.30% over the Wednesday closing price.

Published on Dec 05, 2024, 09:21:39 PM IST

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