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Punjab National Bank to sell Stake in Canara HSBC Life Insurance Company


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The Board of Punjab National Bank (PNB) has approved the initiation of the process to dilute a 10% stake in M/s Canara HSBC Life Insurance Company, an associate company of PNB, through an Initial Public Offer (IPO) on the stock exchanges (BSE/NSE). Currently, PNB holds a 23% stake in the insurance firm.

The decision to dilute the stake is subject to regulatory approvals. Canara Bank and HSBC Insurance (Asia Pacific) Holdings are the promoters of Canara HSBC Life Insurance Company, holding 51% and 26% stakes, respectively.

It is worth noting that there have been previous reports regarding PNB’s plans to divest its stake in Canara HSBC Life Insurance Company. In May 2021, PNB announced its intention to divest its stake in the insurance company at an appropriate time, depending on market conditions and available options. However, in February 2023, PNB withdrew the process of divestment due to regulatory changes. The recent decision to dilute the stake through an IPO represents a renewed effort by PNB to divest its stake in Canara HSBC Life Insurance Company.

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