Bank of Baroda, DBS Bank and Karur Vysya Bank Likely to Sell Their Cumulative Stake of Just over 30% to Canara Bank

Bank of Baroda Limited (NSEI:BANKBARODA), DBS Bank Ltd. and The Karur Vysya Bank Limited (NSEI:KARURVYSYA) are likely to sell their cumulative stake of just over 30% in CanBank Computer Services Limited to Canara Bank (NSEI:CANBK), its majority owner. This will make Canbank Computer, a software-enabled services and ATM management company, a fully owned subsidiary of Canara Bank. Canara, which now holds a 69.14% stake in the subsidiary, has initiated this exercise as it plans to convert the unit into a credit card company.

The bank has decided to hive off its credit card division for more focused business expansion. "These banks have in principle agreed to our proposal to buy out the remaining stake in the company. The valuation exercise is being done now," Canara Bank managing director Satyanarayana Raju told ET.

Bank of Baroda owns 18.52% in the computer services company while DBS and Karur Vysya hold 6.17% each. These banks did not respond to ET's queries till press time 26 July 2023.