Canara Bank, a public sector bank headquartered in Bengaluru, India, 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. 

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The remaining 23% stake in the life insurance entity is owned by Punjab National Bank.  

The Gurugram, Haryana-based company has offices in more than 100 branches across India.  

Over the past 15 years, the company has served as one of the major bancassurance conglomerates and offers a range of insurance products and services to customers via multiple channels including Canara Bank and HSBC’s network in Tier I, II and III cities of India.  

Apart from life insurance offerings, Canara HSBC Life Insurance Company’s portfolio includes products across individual and group space such as health, retirement solutions, online term plans, credit life as well as employee benefit segments. 

All these products are offered via digital, direct, agency model and direct field force. 

Last year in October, Canara HSBC Life Insurance joined forces with insurtech company Artivatic.AI to support insurance operations’ digitalisation.