Canara Bank's stake in Commercial Indo Bank LLC sold to SBI for ₹121 cr
1 min read 24 Mar 2023, 05:50 AM ISTCIBL, incorporated in 2003, is a joint venture in Russia between SBI (60 per cent) and Canara Bank (40 per cent).
PremiumCanara Bank has sold its stake in the Russian joint venture Commercial Indo Bank LLC (CIBL) to the other venture partner State Bank of India (SBI) for about ₹121.29 crore, the bank said on Thursday,
CIBL, incorporated in 2003, is a joint venture in Russia between SBI (60 per cent) and Canara Bank (40 per cent). The Bengaluru-based state-owned bank entered into the agreement for sale on November 11, 2022.
Canara Bank, in a regulatory filing, said it received the entire consideration amount equivalent to ₹121.29 crore on Thursday for the sale of its stake, according to the news agency PTI.
The announcement about selling Canara Bank's stake in Commercial Indo Bank LLC to SBI was made in January this year. The entire shares held by Canara Bank have been transferred to SBI on November 11, 2022, according to the agreement.
“Based on share sale agreement and with the consent of Central Bank of Russia, entire shares held by Canara Bank have been transferred to SBI on 30.11.2022 However, consideration in USD as agreed by the parties is not yet received," Canara Bank earlier said in its regulatory filing.
Moody's Investors Service also upgraded the long-term local and foreign currency bank deposit ratings of the state-owned Bank of Baroda, Canara Bank, and Punjab National Bank. The ratings firm also affirmed State Bank of India's long-term local and foreign currency bank deposit ratings to Baa3.
The public sector lender also hiked home loan rates and other loan rates from March 12 this year. The overnight MCLR has been raised by Canara Bank by 35 basis points to 7.90% from 7.55%, while the one-month MCLR has been raised by 45 bps to 8% from 7.55%.
The six-month MCLR has climbed from 8.30% to 8.40% up by 10 bps, while the three-month MCLR has increased by 25 bps to 8.15% from 7.90%. The bank raised the MCLR for a 1 year tenor from 8.50% to 8.60%, up by 10 bps.
(With PTI inputs)
