The initial public offer for Canara Robeco Asset Management Company may come by the fourth quarter of the ongoing fiscal.
Canara Bank is looking to dilute a 13 per cent stake in the mutual fund subsidiary. The public sector lender holds a 51 per cent stake in the company, while the remaining 49 per is held by Orix Corporation Europe NV (formerly known as Robeco Groep NV).
“Already our board has approved the dilution of stake (in Canara Robeco AMC) and the other partner has also given the consent. The board of the concerned subsidiary is monitoring approval from all the competent regulators. We hope that by the last quarter of this year, it may likely come up for listing,” said K. Satyanarayana Raju, MD and CEO of Canara Bank, on Wednesday.
The average assets under management of Canara Robeco Mutual Fund was ₹87,069.50 crore in the January-March quarter of 2023-24, according to data from AMFI.
The bank announced a net profit of ₹3,757 crore for the quarter ended March 31, up 18.33 per cent from ₹3,175 crore in the corresponding quarter of the previous year. The net interest income of the bank during the quarter was ₹9,580 crore, up 11.18 per cent from ₹8,617 crore a year ago.
The lender has also improved its net interest margin from 2.95 per cent on March 2023 to 3.05 per cent as of March 2024. The bank’s board has recommended a dividend of ₹16.10 per share of face value ₹10 for 2023-24.
