HSBC has decided not to exit its insurance venture with public sector lenders Canara Bank and Oriental Bank of Commerce.
Canara HSBC Oriental Bank of Commerce Life Insurance Company was launched in 2008 as a joint venture (JV), with Canara Bank holding 51 per cent stake, HSBC Insurance (Asia Pacific) 26 per cent and Oriental Bank of Commerce 23 per cent. Chairman and Managing Director of Canara Bank, R K Dubey, told Business Standard: "They (HSBC) have officially said they would be staying back. So, the joint venture is intact. Their shareholding also remains the same."
The Rs 60,000-crore Shriram Group, Canada's Manulife Financial Corp and a few others had shown interest in buying HSBC's stake in the $800-million (around Rs 4,000 crore) insurance venture. HSBC's stake in the JV is worth about $200 million (approximately Rs 1,000 crore).
For 26 per cent stake, HSBC was quoting about Rs 1,000 crore. Industry sources said this was not realistic. The insurance company has 917 employees. Its gross written premia for September stood at Rs 39.1 crore.
This year's (till September) GWP is Rs 288.7 crore, while the total written premiums since the launch stood at Rs 7,309.8 crore.
The company, with 28 offices, had sold 414,868 policies since its inception and its assets under management stood at Rs 7,153.87 crore. Total number of branches of Canara Bank, HSBC, Oriental Bank of Commerce, Shreyas, Gramin Bank, Kerala Gramin Bank and HSBC Invest Direct selling the company's products was 6,162.
On CAD
PTI reports that according to an HSBC report, India's current account deficit, which narrowed in the second quarter of this financial year, is likely to widen during the second half of FY 2013-14, as seasonal demand bring in more imports, an says.
According to the global brokerage firm, the deficit is likely to widen again as imports get a lift from seasonal demand and a gradual recovery in domestic demand.
Canara HSBC Oriental Bank of Commerce Life Insurance Company was launched in 2008 as a joint venture (JV), with Canara Bank holding 51 per cent stake, HSBC Insurance (Asia Pacific) 26 per cent and Oriental Bank of Commerce 23 per cent. Chairman and Managing Director of Canara Bank, R K Dubey, told Business Standard: "They (HSBC) have officially said they would be staying back. So, the joint venture is intact. Their shareholding also remains the same."
The Rs 60,000-crore Shriram Group, Canada's Manulife Financial Corp and a few others had shown interest in buying HSBC's stake in the $800-million (around Rs 4,000 crore) insurance venture. HSBC's stake in the JV is worth about $200 million (approximately Rs 1,000 crore).
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Together, the two public sector banks have about 6,000 branches across the country, which is a major route to grow the business.
For 26 per cent stake, HSBC was quoting about Rs 1,000 crore. Industry sources said this was not realistic. The insurance company has 917 employees. Its gross written premia for September stood at Rs 39.1 crore.
This year's (till September) GWP is Rs 288.7 crore, while the total written premiums since the launch stood at Rs 7,309.8 crore.
The company, with 28 offices, had sold 414,868 policies since its inception and its assets under management stood at Rs 7,153.87 crore. Total number of branches of Canara Bank, HSBC, Oriental Bank of Commerce, Shreyas, Gramin Bank, Kerala Gramin Bank and HSBC Invest Direct selling the company's products was 6,162.
On CAD
PTI reports that according to an HSBC report, India's current account deficit, which narrowed in the second quarter of this financial year, is likely to widen during the second half of FY 2013-14, as seasonal demand bring in more imports, an says.
According to the global brokerage firm, the deficit is likely to widen again as imports get a lift from seasonal demand and a gradual recovery in domestic demand.