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Canara HSBC Oriental Bank of Commerce Life Insurance Co Ltd has received clearance from the Insurance Regulatory and Development Authority to operate a life insurance business in India.
The new company, a joint venture of Canara Bank, HSBC Insurance (Asia-Pacific) Holdings Limited and Oriental Bank of Commerce, has an initial capitalisation of Rs325 crore, HSBC has Rs127 crore, it was released in a statement. The company is a joint venture between state-run Canara Bank, Oriental Bank of Commerce and HSBC Insurance (Asia-Pacific) Holdings Ltd.
"Alongside the regulatory approval, a project team has been established in Gurgaon to build the significant operational and sales support capability that will be needed to serve the immense distribution reach of the shareholders," said MBN Rao, CMD of Canara Bank and chairman of the new insurance JV. Mr. Rao said advances to the priority sectors rose by Rs. 5,359 crore to Rs. 43,203 crore, accounting for 44 per cent of the bank’s adjusted net bank credit which is well above the 40 per cent norm.
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