A separate division headed by bank's chief general manager Parameshwar Rao would be looking into its foray into insurance, top bank officials told PTI.

While Corporation Bank would take 50 per cent equity in the insurance subsidiary and a foreign insurance company would be given 26 per cent, as per the rules, the remaining stake would be taken up by another domestic partner, sources said.

When contacted Rao said the bank would soon appoint consultants to advise Corporation Bank on its insurance foray. The consultants will also shortlist propective partners in the proposed joint venture. Rao, who is expected to head the insurance subsidiary after the joint venture is formed, said the Corporation Bank hopes to submit the application to the Reserve Bank of India (RBI) in the next few weeks.

The RBI notification on `Entry of Banks into Insurance Business' stipulates banks to get prior approval of the apex bank before entering into the insurance business.

RBI has also stipulated that the maximum equity contribution of banks in the insurance subsidiary should be 50 per cent of the paid-up. Corporation Bank officials said life insurance offers immense opportunity in the country compared to general or non-life business.

A large number of companies are planning to enter the life insurance sector business in the country and this includes ICICI-Prudential, Dabur-Allstate, HDFC-Standard Life, Kotak Mahindra-Old Mutual and SPIC-Metlife.

Among the public sector banks, State Bank of India, Bankof India, Bank of Baroda and a consortium of Punjab National Bank, Allahabad Bank and Vijaya Bank are also planning to enter the insurance sector in the country.

RBI's entry norms for banks has stipulated tough norms including a minimum networth of Rs 500 crore for the entrants and a CRAR of not less than 10 per cent.

The banks should also have net profit for the last three continuous years to become eligible for insurance.