Canara Bank clarifies on news item

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With reference to the news item appearing in a leading financial daily titled "Canara Bank in talks with Capital First, other NBFCs to buy more retail loans", Canara Bank has clarified to BSE that:"In terms of Monetary Policy Statement 2012-13 announced on April 17, 2012, the Reserve Bank of India had issued final revised guidelines on Securitization vide DBOD No. BP.BC-103/21.04.177/2011-12, dated 07.05.2012. These guidelines on securitization are applicable to Banks (excluding RRBs and Local Area Banks) and All India Term Lending and Refinancing Institutions viz., Exim Bank, NABARD, NHB and SIDBI.The Policy Statement cover guidelines involving transfer of assets through Securitization and Direct Assignment of Cash Flows only and will be on without recourse basis.Accordingly, based on these guidelines, on obtaining the approval of the Board, the said policy has been put in place by the Bank. To begin with, the said policy has been implemented in Bangalore, Chennai, Delhi, Mumbai and Pune and from the Prime Corporate Branches / Extra-Large Branches designated by the Circle Offices situated in the said areas by approaching various Non-Banking Financial Services (NBFCs).Hence, it is the normal course of business being done by the Bank."Source : BSE

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