State-owned Canara Bank on Wednesday (December 26) said it has granted in-principle approval to initiate the process of listing its mutual fund subsidiary, Canara Robeco Asset Management Company Ltd, on the stock exchanges through an initial public offering (IPO).
“We wish to inform you that Canara Bank has in principle approved to initiate the process of listing its Mutual Fund Subsidiary Canara Robeco Asset Management Company Ltd, in the Stock Exchanges by way of an Initial Public Offer (IPO), subject to the following the due diligence, laid down procedures, opportune time, regulatory approvals, etc,” the bank said in a regulatory filing.
“The modalities of listing will be decided in due course. The bank will make further announcements of all material developments with regard to the same, as and when required, as per applicable regulations,” the bank noted.
Canara Robeco is India’s second oldest asset manager in existence since 1993 when it was known as Canbank Mutual Fund. In 2007, Canara Bank partnered with Robeco Group by way of a joint venture, and the mutual fund was renamed Canara Robeco Mutual Fund.
Canara Bank reported a 42.8% surge in its net profit at ₹3,606 crore for the second quarter of the financial year 2023-24, compared to ₹2,525.5 crore in the same period the previous year.
The net interest income (NII) grew by 19.76% to ₹8,903 crore, while the net interest margin (NIM) improved to 3.02%, reflecting a growth of 19 basis points. Canara Bank successfully reduced its cost-to-income ratio by 53 basis points, which now stands at 43.68%.
The retail credit showed growth at 10.56%, with housing loans expanding at a rate of 12.32%. Education loans and vehicle loans also saw substantial year-on-year growth, at 14.68% and 9.29%, respectively.
The lender further reported a reduction in its gross NPA ratio to 4.76%, a significant improvement from 5.15% in June 2023 and 6.37% in September 2022. The net NPA ratio also decreased to 1.41%, down by 78 basis points.
Shares of Canara Bank Ltd ended at ₹432.40, up by ₹7.35, or 1.73%, on the BSE.
(Edited by : Shoma Bhattacharjee)
First Published: Dec 27, 2023 6:57 PM IST
Omprakash Tiwary is a business writer who delves into the intricacies of the corporate world. With a focus on finance and economic landscape. He offers readers valuable insights into market trends, entrepreneurship, and economic developments.
