Canara Bank creates vertical in bank for credit card ops, says MD
This story was originally published at 15:17 IST on 6 November 2024
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--Canara Bk MD: Created separate vertical within bank for credit card business
--Canara Bk MD: Credit card vertical in operation from Oct 1
--CONTEXT: RBI rejected Canara Bank's proposal for credit card subsidiary in Sept
--Canara Bk MD: Expect to get govt nod for Canara HSBC Life IPO this month
--Canara Bk MD: Expect to get govt nod for Canara Robeco AMC IPO this month
By Kshipra Petkar and Christina Titus
MUMBAI – Canara Bank has created a vertical within the bank for credit cards, said Managing Director Satyanarayana Raju on the sidelines at the Business Standard BFSI Summit on Wednesday.
"We are not going to go for a separate subsidiary, but we have created a separate vertical within the bank. It started its operations on Oct. 1. We don't want to lose the business," he said. As per a report by The Economic Times, the Reserve Bank of India had rejected the bank's plea for a credit card subsidiary. "The RBI seems reluctant to grant an NBFC licence to a public sector bank," a source familiar with the matter had told The Economic Times.
He also said that the bank is expected to get approval from the Department of Financial Services for initial public offering of Canara HSBC Life Insurance Co Ltd and Canara Robeco Asset Management Co within a fortnight. "Both were represented at the same time. Most likely, we will get approval by this month," he said.
In May, Canara Bank started the process for the initial public offering of Canara HSBC Life Insurance. As per media reports, the bank will dilute 14.5% of its stake. In a post earnings call, Raju had said that the bank was hopeful of an initial public offering of Canara Robeco Asset Management Co in Jan-Mar.
In March, the bank's board of directors approved diluting a 13% stake in Canara Robeco Asset Management Co through an initial public offering. If Canara Robeco AMC is listed, it would be the fifth listed asset management company in India. Canara Robeco Asset Management Co is a joint venture between Canara Bank with 51% stake and the remaining 49% held by ORIX Corporation, previously known as Robeco Group.
At 1322 IST, the shares of Canara Bank traded 0.9% higher at INR 104.56 on the National Stock Exchange. End
Edited by Akul Nishant Akhoury
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