Canara Bank, Oriental Bank of Commerce and HSBC Insurance Asia-Pacific Holdings have entered into an agreement to jointly launch a life insurance company in India, media releases have revealed.

The new company, named Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited, will be 51% owned by Canara Bank, while HSBC and Oriental Bank of Commerce (OBC) will take a 26% and 23% stake, respectively, according to media reports.

According to AFP, the joint venture company, to be capitalized at INR3.25 billion, will have contributions of INR1.02 billion, INR1.77 billion and INR460 million from Canara Bank, HSBC and OBC, respectively.

The new insurance company aims to fulfill the needs of high net worth individuals, professionals, small and medium enterprises, farmers and also rural and semi-urban masses, Canara chairman MBN Rao said, as cited in AFP.