BoB weighs foray into life risk

Bank of Baroda (BoB) has joined several other public sector banks waiting in the wings to enter life insurance business.

The bank's board has approved a proposal for setting up a joint venture. Chairman A K Khandelwal declined to name prospective partners, but said, "We will finalise the arrangements by March 2007. Negotiations for picking up other Indian partner has not yet commenced. We are yet to take a view on it."

Another public sector bank, Canara Bank, is also still to finalise partners for its proposed entry into life insurance.

Punjab National Bank, Bank of India and IDBI Bank have finalised their plans. PNB has entered into a joint venture with US-based Principal Financial Group, Vijaya Bank and UK (Berger) Paints to set up Principal PNB Life Insurance Co. IDBI has teamed up with Europe's Fortis and Federal Bank to launch its life insurance venture.

Bank of India, Japan's Dai-ichi Mutual and Andhra Bank have come together setting up another life insurance company.