Promoters of life insurance firm, Canara HSBC Oriental Bank of Commerce Life Insurance, have infused additional capital of Rs100 crore in the joint venture to fuel its expansion plans.
This would take the total capital base of the company to Rs625 crore, a release said here today.
The insurance joint venture, launched in June, 2008, started with an initial capital of Rs325 crore. Later, the shareholders infused Rs200 crore in December 2008.
"The three shareholders will infuse capital to support the company's growth as and when required," Canara HSBC Oriental Bank of Commerce Life Insurance Company CEO Harpal Karlcut said.
The company today announced strategic tie-ups with two regional rural banks — Shreyas Gramin Bank in Uttar Pradesh and Pragathi Gramin Bank in Karnataka — for distribution of its products.
The two RRBs — sponsored by Canara Bank — will function as corporate agents of the life insurer to sell its products, along with the three shareholder banks, the company said.
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