English Society 24
  • Breaking News
  • Politics
  • Finances
  • Health
  • Fashion
  • Food
No Result
View All Result
  • Breaking News
  • Politics
  • Finances
  • Health
  • Fashion
  • Food
No Result
View All Result
English Society 24
No Result
View All Result
Home Finances

Canara Bank, HSBC see growth potential in life insurance JV

English Society 24 by English Society 24
June 16, 2022
in Finances
0
Canara Bank, HSBC see growth potential in life insurance JV

While the state-owned Punjab National Bank (PNB) is in the process of selling its stake in Canara HSBC Oriental Bank of Commerce Life Insurance due to regulatory reasons, remaining shareholders Canara Bank and HSBC India are not planning to sell their stake as of now, as both the entities expect the business of the life insurance joint venture (JV) to grow going ahead.

The JV can tap the vast network of branches operated by Canara Bank, along with the synergies created by the collaboration with HSBC, Hitendra Dave, CEO of HSBC India, told reporters. He was speaking at an event where the insurer was rechristened as Canara HSBC Life Insurance.

With the PNB selling its stake in the insurer, the renaming of the company will give a better clarity to the customers, Canara Bank MD & CEO L V Prabhakar said.

“HSBC has made its views clear and we love this business, we love this company. Canara Bank has its vast network, but in a different segment and HSBC in a very niche segment. So, to the extent possible we would like to partner, but it is an independent decision of the shareholders,” he said.

On its part, Canara Bank, too, is not planning dilution of its stake in the life insurer as it believes that it can fetch better valuations going ahead, Prabhakar said.

With the core business of Canara Bank remaining strong, the lender would like to fetch higher valuations for the JV. As of March 31, the valuation of the life insurance company stood at around Rs 3,800 crore. The company has also yet posted a loss since its inception in 2008, Anuj Mathur, MD and CEO, Canara HSBC Life Insurance, said. However, the lender has not completely ruled out the option of selling its stake in the insurer.

“Canara Bank is waiting for an appropriate time where valuations are very attractive then the bank will take a call on dilution. As on date, Canara Bank will continue to remain with the subsidiary. But the option is always open. This is dilution in terms of selling to some interested party. Second option is we want every subsidiary of Canara Bank to go for an IPO, that option is also open,” Prabhakar said.

Currently, Canara HSBC Life Insurance is owned by three entities. Canara Bank is the majority shareholder at 51%, while HSBC India holds 26% and PNB holds 23% stake in the insurance company. Oriental Bank of Commerce (OBC) earlier held the stake in Canara HSBC Life Insurance, but the stake was transferred to PNB after the merger. After the government-planned merger of OBC, PNB has to dilute its stake in the life insurance company as insurance regulations do not allow a bank to hold more than 10% stake in more than one insurance company.

Previous Post

RBI lifts 11-month ban on new card issuances by MasterCard

Next Post

Next Post

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Dennis Thomas, pictured here performing in 2008, has died

Kool & The Gang founding member Dennis Thomas dies aged 70 | Ents & Arts News

August 8, 2021

Family, emerging sectors draw Indian expats home

Jussie Smollett ‘a real victim’, says lawyer as hoax attack trial begins | US News

Woman handcuffed by US police raiding wrong house set for £2m compensation | US News

Related post

The Rise of Knotless Braids

Tiny Love Stories: ‘A Couple With Nothing to Talk About’

Biden signs $280B CHIPS act in bid to boost US-made computer parts

Nick Viall Gets His Roses

PM Modi applauds Venkaiah Naidu’s witty one-liners as he bids farewell to Vice President

PM Modi applauds Venkaiah Naidu’s witty one-liners as he bids farewell to Vice President

Categories

  • Breaking News
  • Economic Indicators
  • Fashion
  • Finances
  • Food
  • Health
  • Politics
The Rise of Knotless Braids

The Rise of Knotless Braids

August 10, 2022

Tiny Love Stories: ‘A Couple With Nothing to Talk About’

August 10, 2022

Biden signs $280B CHIPS act in bid to boost US-made computer parts

August 10, 2022
English Society 24

  • Privacy Policy
  • Copyright
  • Contact us

No Result
View All Result
  • Breaking News
  • Politics
  • Finances
  • Health
  • Fashion
  • Food

© 2022 JNews - Premium WordPress news & magazine theme by Jegtheme.

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept”, you consent to the use of ALL the cookies.
Do not sell my personal information.
Cookie SettingsAccept
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT