Canara close to stake sale in MF arm

Canara Bank will announce stake sale in its mutual fund arm to a global player within 2-3 weeks, said Chairman and Managing Director MBN Rao. He, however, did not disclose any further details.

It was earlier reported that the bank was likely to sale its stake in Canbank Mutual Fund to Robeco.

However, Rao declined to comment on the report.

Netherlands-based Robeco, the asset management arm of Rabobank Group, has around 1,600 employees in nine countries. Robeco's assets under management were 131 billion euros at the end of 2005.

Canara Bank is likely to retain 51 per cent or more in its mutual fund arm after the stake sale.

Most fund officials feel the deal would be valued at 6-7 per cent of the fund house's assets under management.

The mutual fund manages assets worth Rs 2,305 crore.

The fund house has recently launched a multi-cap fund and is expecting to raise Rs 1000 crore via the initial float which closes on January 4.