Ing Vysya Awaits Rbi Nod For Risk Foray

ING Vysya is awaiting the Reserve Bank of India's clearance for its life insurance foray and has roped in Bangalore-based GMR group as a partner to replace R S Damani group.

GMR will pick 25 per cent stake in ING Vysya Life Insurance which was earlier held by the Damani group. While Vysya Bank would have a majority 49 per cent stake and ING will hold 26 per cent, the maximum permissible foreign investment in an insurance venture.

"We have tied up with GMR group. The RBI clearance is now pending," the company's managing director Ton G M Van Der Star said.

The proposal of ING Vysya, which had applied to the insurance regulatory and development authority (IRDA), was blocked by the apex bank after the Damanis' name figured among the list of brokers raided by the tax authorities after the stock scam.

The company will have an initial capital of Rs 110 crore with an authorised capital of Rs 300 crore, ING representative in India.

"We have chosen GMR group because of its strong presence in the infrastructure sector and long-term commitment in the business they are into," Star said.

After receiving necessary clearances, the company intends to start operations in all the major metros. The company would be headquartered in Bangalore.

Vysya Bank was the first bank to apply for insurance licence though the State Bank of India (SBI), which has a tie up with the BNP Paribas subsidiary Cardif, has been the first to kick-off operations.