IDBI Fortis unaffected by Fortis bailout, says official

Written by Banking Bureau | Mumbai, Sep 29 | Updated: Sep 30 2008, 07:30am hrs
The nationalisation of parts of banking and insurance group, Fortis, is not going to impact its Indian insurance joint venture, a top official said on Monday.

"The new situation is not going to have any impact on the Indian JV,'' said, G V Nageswara Rao, managing director and chief executive officer, IDBI Fortis. He explained that the bailout happened only in the banking as well as asset management ventures of the company, leaving the insurance venture unaffected by it.

In India, Fortis has 26% stake in a life insurance JV with state-run IDBI and Federal Bank, the maximum a foreign firm can own in insurance firms. IDBI holds 48% while Federal Bank holds 26% in the joint venture.

Talking about his achievements, Rao said that within five months of launch we have been able to garner Rs 100 crore as premium collection. "My company has got a capital base of Rs 200 crore,'' he said. The Belgian, Dutch and Luxembourg governments agreed to inject 11.2 billion euros into the financial group in a bid to prevent US-style financial contagion.