Global banking major HSBC is evaluating options to increase its stake in Canara HSBC Life Insurance, a CNBC-TV18 report said, quoting sources.
As part of its broader strategy, HSBC has also expressed its interest in increasing its stake in Canara HSBC Life Insurance in a meeting between its global management and senior officials from the ministry of finance, the sources added.
Canara Bank is the largest shareholder in the joint venture with a 36.5 per cent stake, while HSBC holds 25.5 per cent. The remaining stake is with other shareholders
According to sources, HSBC is exploring multiple routes to increase its holding. These include a potential fresh issuance of shares by the insurer or acquisition of equity from existing investors. The final structure will be subject to regulatory approvals and discussions with stakeholders.
HSBC is likely to soon approach Canara Bank to communicate its intention to raise its stake in the life insurance venture. The development underscores continued interest from global financial institutions in India’s fast-growing insurance market.
