Canara Bank approves diluting 14.5% stake in its life insurance venture

Canara Bank has approved commencing the process of diluting a 14.5% stake in its subsidiary, Canara HSBC Life Insurance Company.

This process will be carried out by listing the life insurance subsidiary on the national stock exchanges through an IPO.

Canara HSBC Life Insurance Company’s proposed IPO is currently subject to the receipt of necessary approval from the Reserve Bank of India (RBI) and the Government of India’s Department Of Financial Services (DFS).

The bank confirmed that the size, timing and other modalities of the offering are expected to be finalised in the coming days.

In a stock exchange filing, Canara Bank said: “The size of the issue, opportune time and modalities of issue will be decided in due course. The bank will update the exchanges of all material developments with regard to the same, as and when required, as per applicable regulations.”

Canara HSBC Life Insurance Company, established in 2008, is a joint venture company with a 51% stake owned by Canara Bank and a 26% stake held by the HSBC Insurance (Asia Pacific) Holdings.