Bank of Baroda,Andhra Bank is looking for third partner for insurance sector
Owing to this norm, the state-owned banks foraying into the insurance sector have to rope in one more domestic partner to form an insurance venture.
After finalising the third partner, Bank of Baroda will seek approval from the RBI.
Andhra Bank has been planning to enter the life insurance sector for quite some time and was initially in talks with Bank of India.
However, the talks fell through and Bank of India roped in Union Bank of India for its insurance joint venture with Japanese major Dai-Ichi Mutual Life Insurance Co.
A number of state-run banks, including Canara Bank, Oriental Bank of Commerce, IDBI, Bank of India, and Union Bank of India, have formed joint ventures to foray into the life insurance business in India.
According to the Reserve Bank of India’s guidelines, public sector banks are not allowed to hold more than 51 per cent in an insurance venture.
Owing to this norm, the state-owned banks foraying into the insurance sector have to rope in one more domestic partner to form an insurance venture.
After finalising the third partner, Bank of Baroda will seek approval from the RBI.
Andhra Bank has been planning to enter the life insurance sector for quite some time and was initially in talks with Bank of India.
However, the talks fell through and Bank of India roped in Union Bank of India for its insurance joint venture with Japanese major Dai-Ichi Mutual Life Insurance Co.
A number of state-run banks, including Canara Bank, Oriental Bank of Commerce, IDBI, Bank of India, and Union Bank of India, have formed joint ventures to foray into the life insurance business in India.