HSBC targets expanding stake in Indian insurer

The firm plans to buy PNB’s shares in Canara HSBC.

HSBC Insurance Asia Pacific Holdings (INAH) is planning to expand its stake in Indian insurer Canara HSBC OBC Life Insurance by acquiring Punjab National Bank’s (PNB) shares in the company.

According to a regulatory filing by PNB, it has received communications from INAH that it has intentions to buy the bank’s stake in the insurance firm.

PNB said it will evaluate INAH’s proposal on the matter.

INAH, as a foreign partner holds 26% of Canara HSBC OBC Life Insurance whilst PNB holds the 23% of Oriental Bank of Commerce (OBC) after the former acquired OBC.

The Insurance Regulatory and Development Authority of India prohibits companies owning more than 10% in a second insurance venture which prompted PNB to announce in May last year that it will divest its holdings in Canara HSBC OBC Life Insurance.