Canara Bank to sell full stake in Commonwealth Trust India

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Published: September 24, 2019 3:41:54 AM

The bank reported a profit after tax (PAT) of Rs 329 crore in Q1FY20 on a total asset base of Rs 6.94 lakh crore as on June 30, 2019 against a PAT of Rs 281 crore in Q1FY19.

The bank’s gross and net non-performing assets stood at 8.77% and 5.35%, respectively, as on June 30, 2019. The bank’s gross and net non-performing assets stood at 8.77% and 5.35%, respectively, as on June 30, 2019.

Canara Bank on Monday informed exchanges that it was planning to sell its stake in Commonwealth Trust India (CTIL).

In the exchange filing, the public sector lender informed that the investment committee of the bank has permitted to initiate the process of stake sale in full in CTIL. The lender invites expression of interest for sale of 37,500 equity shares or 30% of the paid-up share capital held by the bank in the company.

“Considering the unsubstantial financials of the associate as per the last available financial statements as at March 31, 2017, there is no material impact of non-inclusion of its financials in the bank’s consolidated financial statements, ” the bank said in its FY19 annual report.

The bank reported a profit after tax (PAT) of Rs 329 crore in Q1FY20 on a total asset base of Rs 6.94 lakh crore as on June 30, 2019 against a PAT of Rs 281 crore in Q1FY19. The bank’s gross and net non-performing assets stood at 8.77% and 5.35%, respectively, as on June 30, 2019. The bank reported a Tier-I capital ratio of 8.91% and capital to risk-weighted assets ratio (CRAR) of 11.70% as on June 30, 2019.

Icra placed the bank’s bonds worth Rs 9,400 crore on credit watch with developing implications last week as the Government of India proposed the merger of Canara Bank with Syndicate Bank. Upon implementation, the merger is expected to create the fourth-largest public sector bank in India in terms of business of Rs 15.05 lakh crore, according to the financials as on June 30, 2019.

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