Canara Bank gets exemption to hold more than 30% in JVs

Canara Bank has got exemption from the Centre to hold stake beyond the 30% upper limit under the Banking Regulation Act in joint ventures Canara Robeco Asset Management Company and Canara HSBC Life Insurance Company.

The bank, which owns 51% each in the two JVs, had approached the government seeking permission to divest 13% in the asset management entity and 14.5% in the insurer, by way of initial public offers, Canara Bank said in a filing on Wednesday. The Centre, on the recommendation of the Reserve Bank of India, has decided that the provisions of sub-section (2) of Section 19 of the Banking Regulation Act will not apply to Canara Bank with regard to its shareholding exceeding 30% in the two companies till October 31, 2029 or its revocation, whichever is earlier, the Finance Ministry said in a notification.