Canara Bank sees units' share in revenue increasing

MUMBAI (Reuters) - State-run Canara Bank expects its subsidiaries to contribute equivalent of the bank's current non-interest income, a top official said on Monday.

The non-interest income currently contributes around 15 percent to its total income and its nine subsidiaries are expected to collectively generate 15-20 percent over a period of time, Chairman and Managing Director M.B.N. Rao said.

The bank's subsidiaries currently has negligible contribution to its revenues, he told reporters. "We started reviewing and actually sprucing up recently," he said.

"I am very hopeful that in course of time, the subsidiaries should be able to provide at least 15-20 percent of the total income," he said without specifying any timeframe.

The bank's subsidiaries include CanFin Homes Ltd, an insurance joint venture with HSBC and state-run Oriental Bank of Commerce and an asset management joint venture with Dutch fund house Robeco.

Its insurance joint venture has obtained preliminary regulatory approval and is expected to launch its first policy by mid-2008, Rao said.

Shares in Canara Bank ended 0.28 percent up at 305.65 rupees in the Mumbai market.