Canara Bank: Asset sale to reduce capital needs

Life insurance, housing finance, asset management key non-core assets

Canara Bank has been among the proactive public sector banks (PSBs) to dispose its non-core assets, to shore up its capital position. While it ranks fourth in terms of holding non-core assets, trailing peers such as State Bank of India (SBI), Punjab National Bank (PNB) and IDBI, analysts at Antique Stock Broking indicate Canara Bank’s non-core assets can reduce its capital requirement needs by 30 per cent.
 
The Street pegs the bank’s non-core assets could add up 30–32 per cent of Canara Bank’s market capitalisation (m-cap). In fact, its capital raising efforts has helped it increase tier-1 capital from