New Delhi, Apr 16: Punjab National Bank today tied up with New India Assurance for selling its products and plans to forge a life insurance venture with Apollo Tyre, Vijaya Bank and principal financial group of US. "We have applied to the Reserve Bank for the life insurance foray," PNB chairman S S Kohli said, adding the bank plans to hold 30 per cent stake in the venture. The other partners are Apollo, which would take 39 per cent, Vijaya Bank 5.0 per cent and US-based principal financial group would pick up the remaining 26 per cent. Subject to RBI's approval, the life insurance venture would start with an initial capital of at least Rs 100 crore. This is perhaps the fourth attempt by the bank to forge tie ups for life insurance foray. The earlier attempts including that with Hero group and DCM Shriram were unsuccessful due to various reasons. PNB also signed an MoU with New India Assurance for distributing general insurance products through its branches. "PNB will be taking up corporate agency of New India Assurance. The bank has already taken up with RBI for necessary approvals and training of staff will start soon," Kohli said. He said the bank will start selling the General Insurance products through branches which have large credit portfolio. PNB, which has a client base of over 3.0 million and over 4,400 offices, would shore up its fee-based income from the insurance tie up. PNB's total business was around Rs 1,20,000 crore with deposits worth Rs 76,000 crore and advances in excess of Rs 43,000 crore.

Bureau Report