Canara, OBC, HSBC in JV for life insurance business

New Delhi, Mar 5 (UNI) Canara Bank, Oriental Bank of Commerce (OBC) and HSBC Insurance (Asia Pacific) Holdings Ltd today entered into a joint venture agreement to form a life insurance company.

Canara Bank will have a 51 per cent stake while OBC envisages to have 23 per cent stake in the joint venture.

HSBC Insurance will own 26 per cent stake, the maximum permissible by a foreign firm as per existing regulations and Indian Law, in the proposed company.

The planned insurance company will be capitalised at Rs 200 crore, of which HSBC is expected to contribute Rs 52 crore, Canara Bank Rs 102 crore and OBC is expected to contribute Rs 46 crore.

In addition, HSBC Insurance is also expected to bring a premium of Rs 125 crore.

The non-binding MoU is subject to various approvals from Reserve Bank of India, IRDA and other regulatory and a final nod to the final terms from the three partners.

UNI