Punjab National Bank (PNB) announced that it has got approval from its board of directors for initiating the process to dilute 10 per cent stake in Canara HSBC Life Insurance Company by listing the insurer through an initial public offer.
“The Exchange is hereby informed that the Board in its meeting held today, i.e., 04.06.2024 has accorded its approval for initiating the process of diluting 10.00 per cent stake of the Bank in M/s Canara HSBC Life Insurance Company Ltd., an associate company of the Bank, by listing the Company in Stock Exchanges (BSE/NSE) through Initial Public Offer (IPO),” the bank said in a regulatory filing.
The proposed move will be subject to regulatory approval. The modalities of the issue and other formalities will be decided in due course, it added.
Currently, PNB holds a 23 per cent stake in Canara HSBC Life Insurance.
The move comes close on the heels of Canara Bank giving approval for initiating the process of diluting 14.50 per cent stake in its subsidiary. Currently, Canara Bank has a 51 per cent stake in the life insurer, while HSBC has a 26 per cent stake in the joint venture.
Earlier in May, the public sector lender had reported nearly three-fold rise in its net profit to Rs 3,010 crore in Q4, driven by fall in provisions for bad loans and higher interest income. The bank had posted a net profit of Rs 1,159 crore in the year-ago period.