Canara Bank to sell stake in three subsidiaries

Mumbai: State-owned Canara Bank on Tuesday said it will monetise non-core assets by selling stakes in three subsidiary companies to improve its capital base.

The bank, as per a regulatory filing, has decided to go for monetisation of non-core assets by selling its shares in part or full in Canara Robeco Asset Management Co, Canbank Computer Services and Can Fin Homes.

This, it said, will be done "with a view to augment resources to improve the capital base of the bank for further business growth".

The proposed stake sale in accordance with directions of the Ministry of Finance which had asked the bank to initiate necessary steps to take "suitable decision in divesting the non-core banking activities".

The board of directors of the bank in the meeting held yesterday had permitted it to divest stake either in part or in full in the three domestic subsidiaries/associates.

Canara Bank further said that it has empanelled merchant bankers/ investment bankers to carry out the proposed stake sale.

The bank did not disclose how much money it plans to raise from selling its equity in the three companies.

The government had last month approved a Rs 2.11 lakh crore plan to recapitalise public sector banks. Banks too have been asked to raise funds from markets.