Canara Bank to sell non-core assets

Reported by: |Updated: November 22, 2017

Canara Bank is proposing to sell stake in its asset management and housing finance units. The board of the bank has formally approved the proposal, which envisages selling the stakes either fully or partially. The bank wants to better its resources and improve the capital base. The bank’s board has also approved divestment of stake in Canbank Computer Services, where the bank is a majority shareholder. The bank also holds 51% in joint venture Canara Robeco Asset Management Co and 30% in Can Fin Homes. The bank feels some of these assets that are unrelated to its core business and the sale of these assets would unlock the value of strategic investments. The bank has CAR of 12.45% at the end of September, which is well above the regulatory requirement.