Punjab National Bank (PNB) gains over 3% as the bank cancels Canara HSBC Life Insurance stake sale
In the latest development, PNB shares have witnessed a significant rise of more than 3% on March 21, following the cancellation of its stake sale in Canara HSBC Life Insurance. The public sector lender traded at Rs 49.85 on the National Stock Exchange (NSE) at 2:09 pm and continued its upward trend for the third consecutive session.
This move comes after the Insurance Regulatory and Development Authority of India (IRDAI) notified the bank on December 5, 2022. Following this, the PNB board of directors gave approval for the withdrawal of the process for divestment of the bank’s stake in Canara HSBC Life Insurance Company on February 28.
As per the current situation, PNB will retain its stake in Canara HSBC Life as an investor, subject to regulatory approvals. The bank currently holds a 23% stake in Canara HSBC Life Insurance Company, while Canara Bank and HSBC hold 51% and 26%, respectively.
PNB had earlier expressed its intentions to divest its stake in Canara HSBC Life Insurance Company, an associate company of the bank, in May 2021. However, the bank has decided to hold its stake as an investor, considering the market conditions and available options.
This decision will certainly have a positive impact on PNB’s financial position and boost investor confidence in the bank.
Punjab National Bank is India’s first Swadeshi Bank. PNB is a Banking and Financial service bank owned by the Government of India with its headquarters is in New Delhi, India. It is the Third largest PSU after IOB in India.
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