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PNB Sells 10% Stake in Canara HSBC Life for Rs 1,007 Crores Ahead of IPO.

Banking & Finance | Dated: 25 Oct 2025

**Punjab National Bank (PNB)** sold a **10% stake** in its associate company, **Canara HSBC Life Insurance Company**, for **?1,007 crore** through an Offer for Sale (OFS) as part of the insurer's Initial Public Offering (IPO). This strategic move reduces PNB's holding from 23% to 13%, aiming to optimize its investment portfolio and focus on core banking operations.

🎯 Key Highlights:

  • Punjab National Bank (PNB) sold a 10% stake in Canara HSBC Life Insurance.
  • The transaction was executed for a total consideration of ?1,007 crore through an Offer for Sale (OFS).
  • The stake sale reduces PNB's holding from 23% to 13%, optimizing its investment portfolio.

💡 Other Important Facts:

  • Sale was executed through an Offer for Sale (OFS) as part of the insurer's IPO.
  • Proceeds will enhance the bank's liquidity and support core banking operations.
  • Move aligns with the trend of banks reducing stakes in non-core insurance ventures.

📚 Test Your Knowledge:

What amount did PNB raise by selling a 10% stake in Canara HSBC Life?

Correct Answer: Rs 1,007 Crores

🚀 Quick Recap:

About Punjab National Bank (PNB)

  • Established: 1894, HQ: New Delhi, Tagline: The Name You Can Bank Upon.
  • Canara HSBC Life: Joint venture with Canara Bank and HSBC, PNB reduced its holding to 13%.