Within months of kicking off deliberations for striking a joint venture for its foray into non-life insurance, the state-run Bank of Maharashtra has opted out of a proposed venture with Shriram Financial Services Holdings and South Africa?s Sanlam. Speaking with FE , MD Mallya, chairman and managing director of the bank, sai,d ?We were unable to resolve certain terms and conditions of the joint agreement as they were unacceptable to us for the joint venture. We have decided to exit from it?.
As per the draft, Sanlam, South Africa?s second-biggest insurer, was to hold 26%, while Chennai-based Shriram?s Holding was likely to have 59% stake in the joint venture, leaving the balance with the bank itself. Asked if his bank was on the lookout for any other partner for its foray into non-life insurance, Mallya agreed, ?Yes, we are open to talks, but nothing concrete has happened in this direction.?
The joint venture had already received the preliminary nod from the Insurance and Regulatory Development Authority (Irda) and was supposed to start its operation by March.
On the memorandum of understanding his bank reached with ECGC on Wednesday, Mallya said, ?As per the agreement, we?ll be distributing the export credit insurnace products of the ECGC and will be charging 10% of the premium as our fee?.
