Canara Bank on December 5 said it has got Reserve Bank's approval for a proposal to divest the bank's stake 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 said in a regulatory filing.
Further, RBI has intimated that in accordance with the exemption granted by the Government of India, the bank should adhere to the October 31, 2029 timeline for bringing its stake in these entities up to 30 percent.
Canara HSBC Life Insurance Company, established in 2008, is a joint venture company with a 51 percent stake owned by Canara Bank and a 26 percent stake held by the HSBC Insurance (Asia Pacific) Holdings and remaining 23 percent stake by Punjab National Bank (PNB).
In the case of mutual fund business, Canara Bank also owns 51 percent stake in Canara Robeco Asset Management Company while Japan's Orix Corporation holding has the remaining stake in the AMC.
Canara Robeco Asset Management Company is the country's second oldest asset manager. The state-run lender had floated the company in 1993, partnering with Robeco, now part of Orix, in 2007.
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