More banks foray into insurance operations

The state- owned banks are expanding their insurance operations. While Union Bank of India and Corporation Bank are forming joint venture with Religare for floating a stand-alone health insurance, Punjab National Bank is looking for foreign partners to enter life and general insurance operations.

Written by FE Bureau

December 30, 2010 02:54 IST

The state- owned banks are expanding their insurance operations.

While Union Bank of India and Corporation Bank are forming joint venture with Religare for floating a stand-alone health insurance, Punjab National Bank is looking for foreign partners to enter life and general insurance operations.

Union Bank, which has a joint venture with Bank of India and Dai-Chi for life insurance operations , would pick up 5% stake by investing a sum of Rs 27 crore in the health insurance. Interestingly, Irda has approved the R-1 application for this venture quite recently. Currently, the bank is distributing the products of New India Assurance and it has been able to garner a sum of Rs 1 crore from the sale of third party products in non-life space during 2009-10. PNB has decided to have a fresh comprehensive re-look at its strategy for insurance business in India with a view to provide full range of financial products to its Indian customers and to realise full value of Bank?s reach and customer base.

This article was first uploaded on December thirty, twenty ten, at fifty-four minutes past two in the night.