RBI gives nod to Canara Bank’s proposal to divest its stake in life insurance, MF ventures-OxBig News Network

Canara HSBC Life Insurance Company 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 and remaining 23% stake by Punjab National Bank.

Canara Bank on Thursday (December 5, 2024) said it has got Reserve Bank of India’s (RBI) approval for a proposal to divest the bank’s stake in life insurance and mutual fund ventures.

“Reserve Bank of India, vide its letter dated December 5, 2024, has accorded approval to our bank for divesting its shareholding in Canara Robeco Asset Management Company Limited and Canara HSBC Life Insurance Company Limited by 13% and 14.5%, respectively through Initial Public Offer (IPO),” Canara Bank said in a regulatory filing.

RBI Monetary Policy Committee meeting: policy rate unchanged at 6.5% for 11th time in a row

Further, RBI has intimated that in accordance with the exemption granted by the Government of India, the bank should adhere to the October 31, 2029 timeline for bringing its stake in these entities up to 30%.

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 and remaining 23% stake by Punjab National Bank (PNB).

In case of mutual fund business, Canara Bank also owns 51% stake in Canara Robeco Asset Management Company while Japan’s Orix Corporation holding has the remaining stake in the AMC.

Canara Robeco Asset Management Company is the country’s second oldest asset manager. The State-run lender had floated the company in 1993, partnering with Robeco, now part of Orix, in 2007.