Mumbai: Public sector lender Canara Bank has approved a proposal to dilute a 14.50 percent stake in its insurance subsidiary, Canara HSBC Life Insurance Company, via an initial public offering (IPO), the bank announced on the exchanges on May 31.

"Canara Bank has granted approval to initiate the process of diluting a 14.50 percent stake in its subsidiary, M/s Canara HSBC Life Insurance Company Ltd, by listing the company on stock exchanges (BSE/NSE) through an IPO," the bank stated.

This approval is subject to the consent of the Reserve Bank of India and the Department of Financial Services, Government of India.

The bank added that the size, timing, and modalities of the issue will be determined in due course.

As of the end of FY24, Canara Bank held a 51 percent stake in its insurance subsidiary, which reported a profit of Rs 113.31 crore for the January-March quarter of FY24.

Additionally, Canara Bank plans to sell a 13 percent equity stake in Canara Robeco Asset Management Company (CRAMC) by taking the mutual fund subsidiary public.

The bank has approved the initiation of the process to dilute this stake through an IPO, subject to approval from the Reserve Bank of India and the Department of Financial Services, Government of India.

Last December, Canara Bank had given in-principle approval to start the process of listing its mutual fund subsidiary through an initial share sale.