PNB sells stake in Canara HSBC OBC Life Insurance

New Delhi:

The state bank, based in the city, acquired a stake in the life insurer in the past financial year following the merger of the former Oriental Bank of Commerce (OBC).

“The bank intends to dispose of its stake in Canara HSBC OBC Life Insurance Co. Ltd, an affiliate of the bank, at an appropriate time depending on market conditions and options available,” PNB said in an official Request.

The former OBC held a 23 percent stake in the life insurer, which was merged into PNB. Canara Bank holds 51 percent of the shares, while HSBC Insurance (Asia Pacific) Holdings Ltd, as a foreign partner, holds 26 percent.

However, PNB has not disclosed how much stake it will water down in Canara HSBC OBC Life Insurance.

It’s also a promoter from another insurer, PNB Metlife Insurance, which owns the highest stake of 30 percent. The company was founded in 2001, the other shareholders include the US Metlife with 26 percent, Elpro (21 percent) and M Pallonji & Company (18 percent).

According to the existing insurance guidelines of the Insurance Regulatory and Development Authority of India (Irdai), a promoter may not hold more than 10 percent of the shares in two insurance companies.

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