Principal's pension venture may not see fourth partner

 The proposed pension-cum-group insurance venture of the US-based Principal Financial Group is unlikely to involve a fourth partner. Principal already has Punjab National Bank (PNB) and Vijaya Bank as allies.

 With the government expected to allow foreign entities a higher stake in pension companies, the 26 per cent cap as in the case of insurance joint ventures may not be relevant.

 This means that Principal could well take more than 26 per cent stake if permitted, leaving 37 per cent for PNB and 12 per cent for Vijaya Bank.

 This would give Principal at a least a majority stake of 51 per cent. Principal is one of the largest pension player in the US market with operations across the Far East and Asia.

 Earlier, the three partners were expected to finalise the choice between Apollo Tyres and Berger Paints on Monday.

 On the sidelines of announcing the launch of the bank