Punjab National Bank (PNB) has appointed international consultant Boston Consulting Group (BCG) to help the bank identifying a suitable foreign partner to venture into life insurance sector.
After dissolving the earlier insurance joint venture with US-based Principal Group, the bank has already invited expression of interest (EoI) for strategic partnership in life insurance and non-life insurance business from Indian and international companies.
The prospective joint venture partner will submit bids in next three weeks.
Mohan Taksale, executive director has confirmed the development.
However, the bank has indicated that state-owned Vijaya bank, which was a partner in the earlier joint venture, might continue in the new one.
?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,? the bank had said.
The bank said it is looking for opportunities in both life and non-life business.
?The bank will evaluate these opportunities and may form strategic tie-ups with interested parties,” PNB said. It said it is open to any operating model ? whether existing in the industry or new ? for such strategic partnerships.
?The bank is looking for opportunities both in short term and long term. In this way, the bank contemplates potential benefits to its customers by making available attractive insurance products,? it said.
In June this year, PNB had parted ways with two of its partners, US-based Principal and Berger Paints, in a planned life insurance joint venture. As part of agreement with the earlier partner, each of JV partner is free to undertake business of insurance brokerage or the business of life insurance independently.
The rejig proposals have since received regulatory approvals, it said. It was decided that PNB will buy the entire 26 % stake held by Principal Financial Group and 32 % participating interest of domestic firm UK (Berger) Paints in Principal PNB Life Insurance Company.
PNB?s stake that time stood at 30 % in the proposed joint venture, while the remaining 12 % is with Vijaya Bank. PNB had set up a committee to evaluate the prospects of entering the insurance business. Principal PNB Life Insurance was incorporated in 2005 with an authorised capital of Rs 110 crore to commence the life insurance business.
The paid-up capital of the company stood at Rs 2 crore.