RBI approves Canara Bank’s divestment from Canara Robeco AMC, Canara HSBC Life Insurance via IPOs – CNBC TV18

State-owned Canara Bank on Thursday (December 5) said it has received approval from the Reserve Bank of India (RBI) to divest its shareholding in Canara Robeco Asset Management Company Ltd (13%) and Canara HSBC Life Insurance Company Ltd (14.5%) through Initial Public Offerings (IPOs).

In a regulatory filing, Canara Bank stated, “Reserve Bank of India vide its letter dated 5th December 2024 has accorded approval to our Bank for divesting its shareholding in Canara Robeco Asset Management Company Ltd and Canara HSBC Life Insurance Company Ltd by 13% and 14.5% respectively through Initial Public Offer.”

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The RBI further directed that the bank adhere to the October 31, 2029, deadline set by the Government of India to reduce its stake in both entities to 30%. “Further, RBI has intimated that in accordance with the exemption granted by the Government of India, the bank should adhere to the October 31, 2029 timeline for bringing its stake in these entities up to 30%,” the lender said.

Canara Bank assured stakeholders of timely updates on the IPO process, stating, “Subsequent to this, Bank will initiate the process of IPO and shall keep Exchanges informed about the material developments in this regard duly complying with SEBI LODR regulations.”

Shares of Canara Bank Ltd ended at ₹108.15, down by ₹0.45, or 0.41% on the BSE.