Punjab National Bank (PNB) on Wednesday announced that it will discontinue the process of divestment in associate company Canara HSBC Life Insurance, the company stated in a regulatory filing.
“The Exchange is hereby informed that on account of recent IRDAI Notification dated 05.12.2022 on IRDAI (Registration of Indian Insurance Companies) Regulations, 2022, the Board of Directors of the Bank in its meeting held on 28.02.2023, has accorded approval for withdrawal of the process for divestment of Bank’s stake in Canara HSBC Life Insurance Co. Ltd. The Bank shall hold its stake in the Company as an investor, subject to regulatory approvals,” the press release stated.
The city-headquartered state-owned bank had acquired a stake in the life insurer post amalgamation of the erstwhile Oriental Bank of Commerce (OBC).
“The bank intends to divest its stake in Canara HSBC OBC Life Insurance Co. Ltd, an associate of the bank, at an appropriate time depending upon market conditions and available options,” PNB had said in a regulatory filing in 2021.
The erstwhile OBC held 23 per cent stake in the life insurer, which by virtue of amalgamation had 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.
Canara Bank owns 51 per cent stake, while HSBC Insurance (Asia Pacific) Holdings Ltd as a foreign partner owns 26 per cent.
Earlier, PNB had not disclosed how much stake it will dilute in Canara HSBC OBC Life Insurance.
It 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).
