Punjab National Bank (PNB) has written to the Insurance Regulatory and Development Authority of India (Irdai), seeking time for shedding stake in an insurance company, after its amalgamation with Oriental Bank of Commerce
(OBC) and United Bank of India.
“We do not want to go for a distress sale, as it will impact the valuation of the insurance company. We have written to the Irdai seeking time window for selling stake in one of the two insurance companies,” a senior PNB
According to Irdai guidelines, a bank cannot hold more than 10 per cent stake in two insurance companies. At present, PNB
holds around 30 per cent stake in PNB
MetLife India Insurance as a promoter and OBC holds 23 per cent stake in insurance joint venture — Canara HSBC Oriental Bank of Commerce
Life Insurance Company. Following the merger, which will come into effect from April 1, 2020, PNB will take over OBC and United Bank. “The plan is to reduce stake in Canara HSBC Oriental Bank of Commerce
Life Insurance to below 10 per cent,” the official said.