Canara Bank shares in focus as lender gets RBI's nod to divest stake in insurance, MF ventures; check details

"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% and 14.5%, 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%.

Canara HSBC Life Insurance Company, established in 2008, is a joint venture company with a 51% stake owned by Canara Bank and a 26% stake held by HSBC Insurance (Asia Pacific) Holdings and the remaining 23% stake by Punjab National Bank (PNB).

In the case of mutual fund business, Canara Bank also owns a 51% 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.

Canara Bank Q2 FY25 Results

The Bengaluru-based lender had earned a net profit of ₹3,606 crore in the same quarter in the previous financial year.

Total income increased to ₹34,721 crore during the quarter under review against ₹31,472 crore in the same quarter last year, Canara Bank said in a regulatory filing.

The bank reported an interest income of ₹29,740 crore during the quarter, higher than ₹26,838 crore in the same period a year ago.

On the asset quality front, the bank witnessed improvement with gross non-performing assets (NPAs) declining to 3.73% of the gross loans by the end of September 2024 from 4.76% a year ago.