"We were initially planning to enter into the non-life business, but we have been advised to consider the life insurance sector as well," Mr Samal said. Allahabad Bank, along with the Punjab National Bank (PNB) and Vijaya Bank, was planning to enter the insurance sector by bringing in a foreign partner.

"The Yashuda Insurance Company of Japan has made a presentation to us and we are planning to enter into a memorandum of understanding (MoU) with them in the next one month," the CMD said. "Further discussions with the Japanese party are currently underway," he added.Asked about the proposed equity of the three banks in the insurance venture, Mr Samal said that the issue was under discussion.