Canara Bank seeks approval to convert software subsidiary into NBFC

Bengaluru: Canara Bank is seeking regulatory approval to convert Canbank Computer Services Ltd (CCSL), its software services and products subsidiary, into a non-banking finance company (NBFC). This will allow the bank to transfer its credit card division to the new NBFC.

The Managing Director and CEO of Canara Bank, K Satyanarayana Raju, informed that as part of this transformation, the bank plans to buy a 30.86% stake in CCSL owned by Bank of Baroda (BoB), Karur Vysya Bank (KVB), and DBS. They are currently processing the value of these shares.

Raju stated that shifting the credit card business to the NBFC will enable the bank to focus on expanding its credit card customer base to 1 crore within the next seven to eight years. Currently, Canara Bank has more than 11 crore customers, but only 8.64 lakh credit card users as of March-end 2024.

CCSL was started in 1994 and is the only software company promoted by a public sector bank. It initially provided IT solutions to the financial services industry and has now expanded to e-Governance as well.

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