Canara Bank has secured approval from the Reserve Bank of India (RBI) for divesting its stakes in the life insurance and mutual fund businesses. The bank is planning to sell its stakes in Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited (HOBESCO Life) and Canara Robeco Equity Exchange Traded Fund Trustee Company Limited. As part of the divestment process, Canara Bank has appointed Kotak Mahindra Capital Company Limited, Citigroup Global Markets India Private Limited, and Barclays Bank PLC as its joint book running lead managers for the public offering of shares. The stake sale is expected to garner around Rs 3,500-4,000 crore. The proceeds from the sale will be utilized by the bank to improve its capital adequacy ratio and augment its capital base. This move is expected to improve the bank’s risk-weighted asset quality and also enhance its risk management framework.
Canara Bank Achieves RBI Endorsement for Offloading Life Insurance and Mutual Fund Holdings
by newsworm | Dec 5, 2024 | Banking, Canara Bank, Oriental Bank of Commerce, RBI