/
•
•
Context is everything.
Detailed stories on technology startups, business and economic current affairs.
Detailed stories on technology startups, business and economic current affairs.
The newly listed insurer commands a premium valuation, but its latest ambition, if not done right, may prove to be a drag.
When Canara HSBC Life Insurance Company listed in October last year, it looked like a fairly promising stock. In the first four months itself, it rose 33%, outperforming insurance bigwigs like SBI Life Insurance, ICICI Prudential Life Insurance and HDFC Life Insurance. The optimism was short-lived, though, with the stock somewhat losing its zing in recent months.
Canara HSBC Life is a joint venture largely promoted by Canara Bank; the public sector lender brings 72% of the business. HSBC, another major stakeholder, brings another 14%. The rest comes from regional rural banks and other channels.
The partnership, albeit complex, worked …
After two years of a heady rally, the first signs of a slowdown in public sector banks’ revenue growth are now visible. Is it time to sell?
The public sector lender appears to have—among other things—issued cards to customers who never asked for them, an internal audit reveals.
Their recent good run notwithstanding, investors see state-owned banks as being more vulnerable to market shocks and lacking the competitive edge that private banks have.
