HSBC Holdings signed an agreement on Monday to form an insurance venture with two state-owned banks, gaining access to more than 40 million customers in an expanding market.
The global bank will hold a 26 percent stake in the venture -- the maximum allowed to overseas insurance partners. Bangalore-based Canara Bank will take a 51 percent stake, leaving the rest to Oriental Bank of Commerce.
The new company, Canara HSBC Oriental Bank of Commerce Life Insurance Company, will be capitalised at 3.25 billion rupees (80 million dollars), of which HSBC will contribute 1.77 billion rupees.Canara Bank will contribute 1.02 billion rupees and New Delhi-based Oriental Bank of Commerce 460 million rupees.
The venture will have access to more than 40 million customers and a nationwide sales network of 3,600 branches throughout India.
Read more in The Economic Times article.
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