Money & Banking

Canara HSBC OBC Life sees over 30 per cent growth in new business premium in FY20-21

KR Srivats New Delhi | Updated on March 10, 2020

Representative image   -  Getty Images/iStockphoto

Keen to ride on banca benefits flowing from Syndicate Bank’s amalgamation with Canara Bank

Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited (CHOICE) is hopeful of clocking over 30 per cent growth in new business premium (NBP) in 2020-21, much higher than the upwards of 20 per cent growth level expected this fiscal, a top official said.

“We want to accelerate our growth. Now that Syndicate Bank is getting amalgamated with Canara Bank (from April 1) and based on the number of branches and customers that will come in, we have a minimum expectation of over 30 per cent growth in NBP next fiscal,” Anuj Mathur, MD & CEO, CHOICE, told BusinessLine.

Over five crore Syndicate Bank customers are likely to come under the fold of Canara Bank post April 1 when the amalgamation takes effect, he said. The combined customer base of Canara Bank and Syndicate Bank will be about 14 crore, he added.

“Demand for insurance goes up in uncertain times. We are optimistic that insurance will do well in these current times, especially through the banca channel.

“Fortunately our customer base is increasing. Our penetration is also increasing which is helping us in overall business growth. Banca is doing well across the industry,” he added.

YES Bank

Asked if CHOICE had made any investments in beleaguered YES Bank, Mathur replied in the negative. “We have no exposure on any AT-1 bonds or in any of the debt instruments or equities of YES Bank,” he said.


Mathur said that CHOICE has recently launched iSELECT+ term plan (an online plan), which provides enhanced protection cover at an affordable premium.

With iSelect+ Term Plan, policy holders can design their own financial safety net to protect their family’s future and ensure that they lead their lives comfortably without any financial worries, he said.

“There are several advantages of this online only term plan. The premium is low. You can take a high sum insured. You are covered until 99 years of age. There is also spouse cover. We expect iSELECT+ to emerge as a blockbuster product for us in the online space. This will help us ramp up our digital business,” he added.

Published on March 10, 2020

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