Sompo to partner Allahabad Bank-led risk venture

Sompo of Japan has been selected as the foreign partner in the general insurance venture led by the Allahabad Bank.

The decision was taken at a meeting on Sunday among the domestic partners of the venture, Allahabad Bank, Indian Overseas Bank, Karnataka Bank and Dabur.

O N Singh, chairman and managing director, Allahabad Bank told Business Standard, "All the domestic partners today decided to pick Sompo as the foreign partner in the general insurance foray."

While Allahabad Bank will hold 30 per cent in the venture, Indian Overseas Bank will have a 19 per cent stake. Meanwhile, Karnataka Bank will hold a 15 per cent stake and Dabur 10 per cent. Sompo will hold a 26 per cent stake in the venture.

Singh added, "We will now be holding a meeting with Sompo shortly where we will sign an agreement with them."

Few months back, the consortium zeroed in three names from where it was reduced to two, namely Sompo of Japan and AXA of France.

"Any further step would be taken in consultation with Sompo. The very next step would be signing the agreement with Sompo and deciding upon the paid-up equity capital.