Canara Bank, Oriental Bank of Commerce and HSBC Insurance Asia Pacific Holdings have jointly established Canara HSBC Oriental Bank of Commerce Life Insurance Company in India.
Through its partners, the new company will have access to over 40 million customers and a formidable nationwide distribution network of more than 4,000 branches throughout India. While both Canara Bank and Oriental Bank of Commerce (OBC) offer an extensive client base, complementary distribution networks and local market knowledge, HSBC brings to this partnership its considerable insurance experience, product range and bancassurance capabilities.
Canara Bank holds 51% stake in Canara HSBC Oriental Bank of Commerce Life, while HSBC Insurance Asia Pacific Holdings holds and Oriental Bank of Commerce hold 26% and 23% respectively.
The board will comprise 11 directors, of which four will be nominated by Canara Bank, two by HSBC and another two by Oriental Bank of Commerce. The board will comprise two independent directors and a CEO. The board will be chaired by MBN Rao, chairman and managing director of Canara Bank.
Harpal Karlcut, CEO of Canara HSBC Oriental Bank of Commerce Life, said: Our company’s focus will be to serve the extensive customer bases of the three partners which already cover the full spectrum of India’s population from high net worth individuals through to the rural and social sectors as well as the country’s largest corporates.