PNB to Sell 10% Stake in Canara HSBC Life Insurance via IPO

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Synopsis:

PNB approves divesting a 10% stake in Canara HSBC Life Insurance through IPO. Canara Bank, with a 51% stake, and HSBC, with 26%, are the major shareholders. Canara HSBC Life reported a surplus of ₹182 crore for FY 2023-24, up 15% from the previous fiscal.

PNB News Today

Punjab National Bank's (PNB) Board has approved the commencement of the process to divest 10% of its shareholding in Canara HSBC Life Insurance through an Initial Public Offering (IPO). Currently, PNB holds a 23% stake in Canara HSBC Life Insurance.

Explore: PUNJAB NATIONAL BANK

Canara Bank's Recent Move

This decision follows Canara Bank's recent approval to dilute its 14.50% stake in Canara HSBC Life Insurance, where it holds a majority stake of 51%. HSBC holds a 26% stake in the joint venture.

Explore: CANARA BANK

Financial Performance

For the fiscal year ending March 31, 2024, Canara HSBC Life reported a surplus of ₹182 crore, marking a 15% increase from the previous fiscal year.

Background and Regulatory Changes

Canara HSBC Oriental Bank of Commerce Life Insurance rebranded itself to Canara HSBC Life Insurance in 2022. PNB's move aligns with regulatory changes by IRDAI, allowing banks to hold equity stakes in two life insurers, including Canara HSBC Life.

PNB's Earlier Position

Previously, PNB's Managing Director and CEO Atul Kumar Goel stated no immediate plans to sell the stake. IRDAI's revised norms allow banks to hold up to 25% equity in two life insurers.

Regulatory Approval and Next Steps

PNB's decision is subject to regulatory approval. The bank aims to list Canara HSBC Life Insurance on the BSE/NSE through the IPO route, facilitating the stake dilution process.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

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