Canara Bank gets RBI approval to divest stake in Canara Robeco AMC, Canara HSBC Life Insurance via IPO
- Canara HSBC Life Insurance Company is a joint venture company with a 51% stake owned by Canara Bank and a 26% stake held by the HSBC Insurance (Asia Pacific) Holdings and remaining 23% stake by Punjab National Bank (PNB).
Canara Bank said it has received Reserve Bank of India’s (RBI) 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 per cent and 14.5 per cent, respectively through Initial Public Offer (IPO),” Canara Bank said in a regulatory filing on December 5.
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%.
Subsequently, the PSU bank announced its intention to initiate the process of an IPO and assured that it would keep the stock exchanges informed of any material developments in this regard.
Canara HSBC Life Insurance Company is a joint venture company with a 51% stake owned by Canara Bank and a 26% stake held by the HSBC Insurance (Asia Pacific) Holdings and remaining 23% stake by Punjab National Bank (PNB).
On the other hand, Canara Bank also owns 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.
On Thursday, Canara Bank shares ended 0.41% lower at ₹108.15 apiece on the BSE.
(With inputs from PTI)
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Business NewsCompaniesNewsCanara Bank gets RBI approval to divest stake in Canara Robeco AMC, Canara HSBC Life Insurance via IPO
First Published:6 Dec 2024, 07:57 AM IST
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