Canara Bank Signs Agreement with SBI For Divestment in CIBL Russia: Deal Details

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Canara Bank Signs Agreement with SBI For Divestment in CIBL Russia: Deal Details
Credit: © Reuters.

The public sector lender Canara Bank (NS: CNBK ) announced on Friday that it entered into a share sale agreement with the country’s largest lender State Bank of India (NS: SBI ) for the sale of equity shares held in the Commercial Indo Bank LLC (CIBL) in Moscow.

Commercial Indo Bank LLC is a Joint Venture between SBI (60%) and Canara Bank (40%) in Russia, incorporated in the year 2003, with a net worth of Rs 215.91 crore as of March 31, 2022.

Canara Bank informed the stock exchanges on Friday that it had transferred all of its shares held in CIBL to SBI on Nov 30, 2022, based on the share sale agreement following the approval of the Central Bank of Russia.

However, the consideration of the amount in USD as agreed by the parties has not yet been received. The lenders expect to complete the transaction on or before March 31, 2023, Canara Bank said in a filing.

Further, the consideration amount yet to be received by Canara Bank from SBI on the sale of equity shares aggregates to the equivalent of $14.67 million.

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