Canara Bank is planning to buy out the stakes of its minority partners in an unlisted subsidiary and transfer its credit card business to this entity.

The state-run lender on Tuesday said it proposes to buy out the stakes of Bank of Baroda and DBS Bank India in Canbank Computer Services Ltd (CCSL). The Bengaluru-headquartered bank owns 69.14% stake in CCSL while the remaining is held by Bank of Baroda and DBS Bank.

“Canara Bank is also exploring transferring the credit card and other digital product portfolio of the bank to CCSL,” the lender said in a notification to the stock exchanges. 

At the end of October, Canara Bank's credit card in force was 820,672. 

CCSL posted a net profit of Rs 7.86 crore during the second quarter of the current financial year.

On Tuesday, Canara Bank also said that it has received the Reserve Bank of India’s approval for divesting its stake in Canbank Factors. The bank has a 70% stake in the unlisted subsidiary.

Canara Bank is currently evaluating procedures for this divestment, the lender said.

Canbank Factors was incorporated in 1991 with the Small Industries Development Bank of India (SIDBI) and Union Bank of India as the co-promoters.