RBI approves Canara Bank’s stake divestment in asset management and insurance units

The Reserve Bank of India (RBI) has approved Canara Bank to divest 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 an Initial Public Offering (IPO).

“Further, the RBI has informed that, in line with the exemption granted by the Government of India, the bank must adhere to the timeline of October 31, 2029, for reducing its stake in these entities to 30 per cent,” Canara Bank said in an exchange filing.

Following this, the bank is expected to initiate the IPO process.

The shares of Canara Bank closed at ₹108.15, down by 0.41 per cent on the BSE.