RBI okays Canara Bank's plan to divest 70% stake in Canbank Factors

RBI okays to Canara Bank for 70% divestment subsidiary Canbank Factors

Public sector lender Canara Bank has got approval from the Reserve Bank of India (RBI) for 70 percent divestment of its unlisted subsidiary Canbank Factors Ltd; the bank said in its regulatory filing on November 28.

"Further to inform that Canara Bank is holding 69.14 percent shares in its unlisted subsidiary, Canbank Computer Services, and proposes to buy out shares of other shareholders that is Bank of Baroda and DBS Bank India Ltd, "the bank said in its statement.

Canara Bank further added that they are also exploring transferring the credit Card and other digital product portfolio of the Bank to CCSL.

Canbank Factors was incorporated in 1991 with the Small Industries Development Bank of India and Union Bank of India as the co-promoters.