Oriental Bank of Commerce is exploring the option of foraying into life insurance business. Speaking on the sidelines of the Banking Conclave, organised by Ficci-eastern regional council, K N Prithviraj, CMD, OBC, said: "OBC has decided to enter the life insurance business. We are currently exploring the idea seriously. It shall be a joint venture with another partner." | |
| Prithviraj informed that the bank will be looking for JV partners for its life insurance foray from both domestic and international arena. |
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| "We are likely to follow the JV model where we will be partnering with other commercial banks. We are also open to forming partnerships with foreign players," he added. |
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| OBC, which will firm up its plans in 12 months, is currently engaged in distribution of life insurance products of LIC and general insurance product of Oriental Insurance. |
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| Meanwhile, the bank has set a target of achieving total business of Rs 100,000 crore in the current financial year. |
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| "OBC's business is expected to touch Rs 100,000 crore, compared with last year's figure of Rs 89,000 crore, of which Rs 52,000 crore were deposits. Both advances and deposits are likely to grow by 20 per cent during the year," he said. |
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| OBC raised Rs 500 crore Tier II capital in the first week of April 2006 and may raise another Rs 500 crore of upper Tier II capital during the year. |
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| "We had a mandate to raise Rs 1,000 crore Tier II capital, of which we have raised Rs 500 crore. If required, we might raise another Rs 500 crore of upper Tier II capital," said Prithviraj. |
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| The bank is expected to open its first overseas representative office in Dubai this year. "We have already received clearance from the Reserve Bank of India for opening representative office in Dubai. The bank will be approaching local authority for clearance. The representative office is expected to be launched within December 2006," he added. |
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| OBC, which absorbed more than Rs 1,200 crore loss of Global Trust Bank in its books after their merger, has already wiped off more than Rs 500 crore loss from its book. |
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| "OBC is required to wipe of Rs 246 crore every year for five years to settle the entire loss. We have already wiped off of the loss for two years. If our profitability holds, we might wipe off the GTB's entire loss in the next two years," Prithviraj said. |
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