RBI approves Canara Bank’s divestment of 70% in its subsidiary

The Reserve Bank of India (RBI) has approved public sector lender Canara Bank’s plan to divest 70% of its unlisted subsidiary Canbank Factors Ltd., the bank stated in a regulatory filing on November 28.

‘Further to inform that Canara Bank is holding 69.14% shares in its unlisted subsidiary, Canbank Computer Services, and proposes to buy out shares of other shareholders that is Bank of Baroda and DBS Bank India Ltd, ‘the bank stated in its statement.

Canara Bank went on to say that they are also looking into giving CCSL access to the bank’s credit card and other digital product portfolio. The Small Industries Development Bank of India and Union Bank of India served as co-promoters of Canbank Factors’ incorporation in 1991.