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.

"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.

''With the support of Canara Bank and Oriental Bank of Commerce and HSBC's insurance expertise, we have made significant progress in getting the company ready to operate. All three shareholders are committed to ensuring that the new company is operated to world-class standards and is competitive in India's fast-growing insurance market,'' added David L Fried, chairman and chief executive of HSBC Insurance (Asia-Pacific) Holdings Limited.

''Our customers and staff are already tremendously excited about the forthcoming launch and we're taking steps to increase the staffing and support. We expect to see a significant increase in production following the launch of the company,'' said Alok K Misra, chairman and managing director of Oriental Bank of Commerce.

Canara Bank owns 51 per cent stake in the life insurance JV, with OBC holding 23 per cent and HSBC holding the remaining 26 per cent stake.