Shareholders take up HSBC Insurance's stake-raising plan

In life insurance JV launched in 2008, Canara Bank holds 51%, HSBC Insurance (Asia Pacific) Holdings 26% and Oriental Bank of Commerce 23%

Shareholders of Canara HSBC Oriental Bank of Commerce Life Insurance Company, a life insurance JV, are discussing HSBC Insurance's plan to raise its stake to 49% from the current 26%.

"It is a shareholders' matter actually. Shareholders are discussing the stake-raising plan of HSBC Insurance," CEO Anuj Mathur told PTI.

In the life insurance JV launched in 2008, Canara Bank holds 51%, HSBC Insurance (Asia Pacific) Holdings 26% and Oriental Bank of Commerce 23%.

With the government upping FDI limit in the insurance sector to 49%, HSBC Insurance is keen to increase its holding in the company to up to 49%.

Mathur termed the increase in FDI limit as "a good enabler" and is hopeful that it will pull more players into the sector.

"Over a period of time, many more insurance players will try to set up and establish their business in India. It will offer wider choice to customers," he added.

On bancassurance, he said it's a channel to reach out to people in tier-II and tier-III cities.

"From customer's standpoint, bank is a trusted partner. They have more trust or confidence in going to the bank branch where they go for their banking business and buy a policy from there," he added.