Punjab National Bank today said its plans to foray into insurance business are alive and is looking for a joint venture partner.
“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 said in a statement here.
The bank said it is looking for opportunities in both life and non-life business.
It invited expression of interest (EoI) for strategic partnership in life insurance and non-life insurance business from Indian and international companies.
“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 restructuring proposals have since received regulatory approvals, it said.
It was decided that PNB will buy the entire 26 per cent stake held by Principal Financial Group and 32 per cent participating interest of domestic firm UK (Berger) Paints in Principal PNB Life Insurance Company Ltd.
PNB’s stake that time stood at 30 per cent in the proposed joint venture, while the remaining 12 per cent 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.