State-run Canara Bank may not reapply for a credit card subsidiary after the Reserve Bank of India (RBI) turned down its proposal, said Managing Director and Chief Executive Officer K Satyanarayana Raju.
Raju further added that the bank has created a separate wing within a bank for credit card functions which got operationalised from October 1.
"We don't want to reapply, but we started the same functions within the bank. We have created a separate wing for credit cards and it got operational from October 1," Raju said on the sidelines of the Business Standard BFSI Insight Summit.
Last month, certain media reports said that the central bank has turned down a Canara Bank proposal to set up a credit card subsidiary. The rejection came because of the regulator's concerns over the unsecured loan portfolios of banks.
Further, Raju said that the approval for the initial public offering (IPO) of Canara HSBC Life Insurance is expected in this month. "We have sent an application for an IPO for both our subsidiaries to DFS, and in a fortnight's time we expect the approval," he told Moneycontrol at the event.
On July 25, in an interview with Moneycontrol, Raju had said that the public sector lender was planning to list its arm Canara HSBC Life Insurance Company in the first quarter of the current financial year. The bank holds a 51 percent stake in the insurance venture.
Canara Bank on May 31 approved a proposal to dilute 14.5 percent stake in the insurance arm through a public issue.
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