Shares of Canara Bank were trading in the green and 2% higher on 29 November after the company had received approval from the Reserve Bank of India (RBI) to divest its 70% stake in its unlisted subsidiary, Canbank Factors. Canbank Factors is the company’s factoring arm that helps MSMEs secure funding and boost cash flow.

The company is also proposing to buy the stake of other shareholders in Canbank Computer Services (CCSL). The other shareholders include Bank of Baroda and DBS Bank India, while Canara Bank holds a 69.14% stake in its unlisted subsidiary. They are also looking to transfer the bank’s credit cards and other digital product portfolios to CCSL.

Earlier this month, the company also announced its plan to float Rs 5,000 crore worth of bonds that will mature in 10 years.

In its quarterly report for July-September, the company reported a 43% year-on-year (YoY) increase in its net profit to Rs 3,606 crore during the quarter.

The net interest income of the company stood at Rs 8,903 crore during the quarter, marking a 19% YoY increase.

At 2:13 pm, the shares of Canara Bank were trading 1.26% higher at Rs 401.10 on NSE.