Canara Bank approves diluting 14.5% stake in its life insurance venture

New Delhi: Canara Bank on Friday said it has approved the process of diluting 14.5 percent stake in its life insurance venture Canara HSBC Life Insurance Company.

The bank plans to dilute its stake by listing the company in Stock Exchanges (BSE/NSE) through initial public offering (IPO), Canara Bank said in a regulatory filing.

This is subject to the approval of the Reserve Bank of India and Department of Financial Services, Government of India, it said.

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The size of the issue, opportune time and modalities of issue will be decided in due course, it said.

Canara Bank owns 51 percent stake, while HSBC Insurance (Asia Pacific) Holdings Ltd as a foreign partner owns 26 percent.

However, the third partner Punjab National Bank holds a 23 percent stake in the life insurer.

The bank also plans to sell 13 percent equity shares in Canara Robeco Asset Management Company (CRAMC) by taking the mutual fund subsidiary public.

Canara Bank had in last December given in-principle approval to start the process of listing its mutual fund subsidiary by way of an initial share sale.

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