The two parties are in the process of giving the final shape to the agreement. Nationwide would hold 26 per cent equity in the venture and the balance 74 per cent would be held by GTB and its business associates, sources said.

GTB chairman Ramesh Gelli, when contacted, said ``We have been keen on the insurance sector for a number of years and are exploring a joint venture possibility with a number of insurers. We are similarly exploring the opportunity of working with Nationwide, among others. Nationwide, too, has been interested in the Indian insurance market and we were in discussions, along with others.''

Mr Gelli, however, declined to confirm whether Nationwide was the final partner, but added ``GTB hopes to finalise a partner in the coming few months for a foray into the insurance sector.''

Sources said Nationwide would provide technical, managerial and administrative support to the new venture. Founded in 1925, Nationwide is one of the largest diversified insurance and financial services provider in the US with over $115 billion in assets. It operates in 37 countries with over 35,000 employees and more than 16 million policies and certificates in force. Nationwide is ranked among the top 130 in the Fortune 500 list.

Global Trust Bank's foray into the life insurance sector is inspired by its focus on retail banking and over 75 branches all over the country. The bank's customer base is expected to touch 6 lakh mark by March 2001 and 10 lakh by March 2002.

GTB plans to leverage its branch network and strong customer base for marketing its life insurance products.

GTB was the first Indian bank to attract equity participation from two global multilateral institutions - International Finance Corporation, Washington, and the Asian Development Bank, Manila.

The bank is currently on the look-out for a foreign financial partner for placing 20 per cent of its equity stake. GTB's deposits stood at Rs 6,198 crore as on March 31, 2000. Total income during the year was Rs 879 crore with profit after tax of Rs 108.62 crore on an equity base of Rs 121 crore.

During the first quarter ended June 2000, the bank posted a profit after tax of Rs 37.16 crore on a total income of Rs 259.37 crore.