Home / Business and Economy / Canara HSBC Profit Climbs 5.5% Amid Debt Raise
Canara HSBC Profit Climbs 5.5% Amid Debt Raise
9 Oct
Summary
- Net profit rose 5.5% to ₹43.1 crore in Q2 FY27.
- Company plans to raise up to ₹287.5 crore via subordinated debt.
- Retains FY27 growth outlook of 18-20% top-line growth.
Canara HSBC Life Insurance announced a 5.5% year-on-year increase in its net profit for the second quarter of FY27, reporting ₹43.1 crore. This is a rise from the ₹40.8 crore earned during the same period last year. The company also experienced a 13% year-on-year growth in net premium earned, which stood at ₹2,553.2 crore.
The insurer's board has approved a significant financial move to raise up to ₹287.5 crore. This capital will be procured through subordinated debt instruments, with the fundraising planned via private placement in one or more tranches.
Canara HSBC Life Insurance has reaffirmed its growth projections for FY27. The company anticipates an 18-20% increase in its top line and a Value of New Business (VNB) margin of 22-23% for the fiscal year.
This forward-looking stance comes after the company reported a 24% increase in new business premium and a 29% rise in VNB in the first quarter of FY27. Management attributed these improvements to growing customer awareness and favorable GST-related changes for protection products.
