Canara Bank Gets RBI Nod for Stake Divestment in Insurance and Mutual Fund Ventures

Canara Bank has received approval from the Reserve Bank of India to divest its stake in Canara Robeco Asset Management and Canara HSBC Life Insurance. The divestment, conducted through an IPO, will reduce Canara Bank's shareholding in these ventures to 13% and 14.5%, respectively, and aligns with a government timeline to lower stakes to 30% by October 2029.

Canara Bank has announced its receipt of approval from the Reserve Bank of India for the proposed divestment of its stakes in life insurance and mutual fund ventures.

The approval letter dated December 5, 2024, allows the bank to reduce its shareholding in Canara Robeco Asset Management Company Ltd by 13% and in Canara HSBC Life Insurance Company Ltd by 14.5% through an Initial Public Offer (IPO).

This strategic move follows the RBI's directive, supported by a government exemption, mandating the bank to align its stakes to 30% in these entities by October 31, 2029, as part of its ownership restructuring plan.

(With inputs from agencies.)