Canara Bank Looks To Rejig Subsidiaries

The Reserve Bank of India has cleared Canara Bank's plans to divest 70% stake in its subsidiary, Canbank Factors.

At this point, the bank is evaluating procedures for this divestment and did not specify further details in its exchange filing on Tuesday.

Canbank Factors was incorporated in 1991 with the Small Industries Development Bank of India and Union Bank of India as the co-promoters.

The lender has also proposed to buy out the stakes of Bank of Baroda and DBS Bank India in its unlisted subsidiary, Canbank Computer Services Ltd., the filing said.

At this point, the bank holds 69.14% of the shares in this entity.

In addition, the lender is also exploring options to transfer the credit card and other digital products portfolio to Canbank Computer Services.

As of Sept. 30, the bank's capital adequacy ratio stood at 16.20%, down 31 basis points year-on-year. Of this, the common equity Tier-1 ratio stood at 11.58% and the Tier-2 ratio at 2.60%.