HSBC Insurance (Asia Pacific) Holdings Ltd (INAH), one of the shareholders in Canara HSBC OBC Life Insurance Co Ltd, has expressed its intention to acquire Punjab National Bank’s stake in the insurance company, according to a filing. “The bank has received a communication from HSBC Insurance (Asia Pacific) Holdings Ltd (INAH), one of the shareholders of the company, conveying its intention to acquire Bank’s stake in the company,” PNB said in the regulatory filing.
However, the communication from INAH is subject to further evaluation by PNB, it added.
The city-headquartered state-owned bank had acquired a stake in the life insurer post amalgamation of the erstwhile Oriental Bank of Commerce (OBC) with the bank in FY20.
The erstwhile OBC held 23 per cent stake in the life insurer, which by virtue of amalgamation has come to PNB.
Canara Bank owns 51 per cent stake, while HSBC Insurance (Asia Pacific) Holdings Ltd as a foreign partner owns 26 per cent.
PNB is also a promoter of another insurer PNB Metlife Insurance, owning the highest stake of 30 per cent. The company was set up in 2001, in which other shareholders include US-based Metlife with 26 per cent, Elpro (21 per cent) and M Pallonji & Company (18 per cent).
As per extant insurance guidelines of Insurance Regulatory and Development Authority of India (Irdai), one promoter cannot hold more than 10 per cent stake in two insurance ventures.
In May 2021, PNB had said that it will divest stake in Canara HSBC OBC Life Insurance Co Ltd.
