Indian public sector lender Punjab National Bank (PNB) is reportedly planning to sell its entire stake in Canara HSBC OBC Life Insurance (CHOICE).
As per media reports, Punjab National Bank is in talks to appoint legal advisors for the proposed divestment.
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The lender had become a promoter shareholder in CHOICE as a result of the merger with Oriental Bank of Commerce and Union Bank of India.
PNB currently holds a 23% stake in the life insurer, 51% stake is held by Canara Bank and HSBC Insurance (Asia Pacific) holds the remaining 26% stake.
PNB’s move is in line with the Insurance Regulatory and Development Authority’s mandate that bars any commercial lender from holding over a 10% stake in two life insurers at the same time.
The lender holds a 30% stake in PNB MetLife insurance.
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