PNB sells its stake in Canara HSBC OBC Life Insurance
The city-based state-owned bank had acquired a stake in the life insurer after the former Oriental Bank of Commerce (OBC) merged into itself last fiscal year.
“The bank intends to sell its stake in Canara HSBC OBC Life Insurance Co. Ltd, a partner of the bank, at the appropriate time depending on market conditions and available options,” PNB said in a regulatory filing.
The former OBC had a 23 percent stake in the life insurer, which, due to the merger, reverted to PNB.
Canara Bank holds 51% of the shares, while HSBC Insurance (Asia Pacific) Holdings Ltd as a foreign partner holds 26%.
PNB, however, did not disclose the amount of stake it would dilute in Canara HSBC OBC Life Insurance.
He is also a sponsor of another insurer PNB Metlife Insurance, holding the largest 30 percent stake. The company was created in 2001 and counts among its other shareholders the American company Metlife with 26%, Elpro (21%) and M Pallonji & Company (18%).
According to the existing insurance guidelines of the Insurance Regulatory and Development Authority of India (Irdai), a promoter cannot hold more than 10 percent of the shares in two insurance companies. PTI KPM MKJ
Warning :- This story has not been edited by Outlook staff and is auto-generated from news agency feeds. Source: PTI