HSBC weighs stake hike in Canara HSBC Life Insurance: Sources to CNBC-TV18

Global banking major HSBC is evaluating options to increase its stake in Canara HSBC Life Insurance, sources told CNBC-TV18.

As part of its broader strategy, HSBC has also conveyed interest towards increasing its stake in Canara HSBC Life Insurance in a meeting between its global management and senior officials from India’s Ministry of Finance, the sources added.

Currently, Canara Bank is the largest shareholder in the joint venture with a 36.5% stake, while HSBC holds 25.5%. The remaining stake is with other shareholders.

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According to sources, HSBC is exploring multiple routes to increase its holding. These include a potential fresh issuance of shares by the insurer or acquisition of equity from existing investors. The final structure will be subject to regulatory approvals and discussions with stakeholders.

People in the know said HSBC is likely to soon approach Canara Bank to formally communicate its intention to raise its stake in the life insurance venture.

The development underscores continued interest from global financial institutions in India’s fast-growing insurance market, supported by increasing penetration and favourable long-term growth prospects.

CNBC-TV18 has reached out to HSBC, the Finance Ministry, and Canara HSBC Life Insurance for comment. Responses are awaited.