RBI Approves Canara Bank's Plan to Sell Stake in Two Subsidiaries.

Banking & Finance

In December 2024, the Reserve Bank of India (RBI) approved Canara Bank's plan to sell part of its shares in two of its subsidiaries: Canara Robeco Asset Management Company (CRAMC) Limited and Canara HSBC Life Insurance Company Limited. Canara Bank, headquartered in Bengaluru, Karnataka, will reduce its stakes in these companies.


      - In March 2024, Canara Bank's board approved the sale of its stakes in both subsidiaries.

      - The bank will reduce its stake by 13% in CRAMC and 5% in Canara HSBC Life Insurance through an Initial Public Offer (IPO).

     

Main Point :-   (i) The Government of India (GoI) has granted an exemption, requiring the bank to lower its stake in both companies to 30% by October 31, 2029.

      (ii) Canara HSBC Life Insurance, a joint venture (JV) established in 2008, has Canara Bank holding a 51% stake, HSBC Insurance Holdings Limited holding 26%, and Punjab National Bank (PNB) owning 23%.

(iii) CRAMC, originally established in 1993 as Canbank Mutual Fund, became a joint venture with the Robeco Group in 2007. Canara Bank owns 51% of the stake in CRAMC, with Japan’s Orix Corporation holding the remaining 49%.
About Canara Bank

CEO: K. Satyanarayana Raju
Headquarters: Bengaluru
          ____________________________