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| BoB likely to start life insurance biz early next fiscal | |
| Press Trust of India / New Delhi November 09, 2008, 14:57 IST | |
State-run Bank of Baroda has said its life insurance venture with the UK-based Legal and General Group is expected to start business in the first quarter of the next fiscal.
"We are in the process of filing R1 (initial regulatory clearance) application. Thereafter, other regulatory approvals generally takes six-to-seven months," BoB Chairman and Managing Director M D Mallya told PTI.
The three-way life venture with the initial paid-up capital of Rs 200 crore was formed in November last year, he said.
While the lead partner BoB would have 44 per cent share in the venture, Andhra Bank would hold 30 per cent share. The remaining 26 per cent would be with the foreign partner.
The two banks have over four crore customers, who could be the captive client for the proposed insurance business. Together these banks have network of about 4,000 branches across the country.
Terming India as the potential growth market, the British insurance major has already announced that it would recruit over 5,000 professionals in India in the the next five years.
Legal and General Group with the market value of about pounds 8 billion, employs 8,000 people in the UK.
There are already around 21 players in the life insurance sector, with the latest being Canara Bank-led life insurance venture, which started its business few months back.
Other banks which are into life insurance includes State Bank of India and ICICI Bank.
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