Canara Bank witnessed a gain of around one percent in early trade on November 29, propelled by the Reserve Bank of India’s (RBI) approval for the public lender to divest its 70 percent stake in the unlisted subsidiary, Canbank Factors.
In addition to this development, Canara Bank is considering a buyout of the remaining shares in its unlisted subsidiary, Canbank Computer Services (CCSL), with Bank of Baroda and DBS Bank India currently holding stakes. Canara Bank holds a majority 69.14 percent of the shares in CCSL. An exploration is also underway for the potential transfer of the bank’s credit card and other digital product portfolio to CCSL.
Canbank Factors, the factoring arm of Canara Bank, plays a crucial role in assisting MSMEs in securing funding and enhancing cash flow.
As of 10:22 am, Canara Bank shares continued their positive trend, trading 1.34% higher at ₹401.40, reflecting investor optimism following the RBI’s nod for strategic divestments.
