Fundraise Plans
PNB to raise around INR 9 bln via OFS in Canara HSBC Life IPO, says MD Chandra
This story was originally published at 18:16 IST on 7 October 2025
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--PNB MD: Plan to strengthen PNB MetLife before thinking of IPO
--PNB MD: No plan to list PNB MetLife as of now
--PNB MD: To raise around INR 9 bln from OFS of Canara HSBC Life
NEW DELHI – State-owned Punjab National Bank hopes to raise around INR 9 billion by selling its stake in Canara HSBC Life Insurance Co. Ltd. through an offer for sale in the life insurer's initial public offering, the bank's Managing Director and Chief Executive Director Ashok Chandra said.
On Friday, Canara HSBC Life Insurance got approval from the Securities and Exchange Board of India for its updated draft red herring prospectus. The life insurance company's initial public offering will be for 237.50 million equity shares of face value INR 10 each. Of this, Canara Bank is offering 137.75 million shares and HSBC Insurance (Asia-Pacific) Holdings Ltd. is offering 4.75 million shares. Punjab National Bank is offering 95 million shares in the issue.
Canara HSBC Life Insurance, which was incorporated in 2007, is a joint venture between Canara Bank, which holds 51% stake, and HSBC Insurance (Asia Pacific) Holdings, which holds 26%. PNB holds the remaining 23% in Canara HSBC Life Insurance. PNB's stake in the insurer was originally held by Oriental Bank of Commerce until it merged with its larger peer in 2020. On Tuesday, shares of Punjab National Bank ended 0.3% lower at INR 114.17 on the National Stock Exchange.
About the bank's other subsidiary – PNB MetLife India Insurance Co. Ltd. – Chandra said currently, there are no plans to list the entity. The plan is to first strengthen the company before going forward with a public listing, he said at the sidelines of the Global Fintech Fest. In 2011, MetLife India had launched bancassurance in partnership with PNB and in 2013, the latter acquired a 30% stake in MetLife India Insurance Co. Ltd., making it PNB MetLife India Insurance Co.
Canara HSBC Life had reported a net profit of INR 234.13 million for the June quarter, up 25% on year. Assets under management of the company were INR 436.39 billion as of end-June. Punjab National Bank, on the other hand, had reported a net profit of INR 16.75 billion, sharply lower from INR 32.52 billion a year ago. On Tuesday, shares of Punjab National Bank closed 0.3% lower at INR 114.17 on the National Stock Exchange. End
Reported by Aaryan Khanna
Written by Priyasmita Dutta
Edited by Tanima Banerjee
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