GOVERNMENT-run Indian Bank is mulling entry into the life insurance business and has invited expression of interest from global players to advise on the foray.
The bank is looking to partner with another local bank and a foreign partner, a top official said.
"We have received interest from two foreign players and three domestic players for the life insurance venture. So, we have invited expression of interest to take help of an external consultant for the foray and we will be taking a call in the next six months," TM Bhasin, chairman and managing director of Indian Bank, said.
He also said that the bank would rope in one more domestic bank and a foreign partner for the venture, given the 74:26 shareholding requirement as per regulation. He, however, declined to mention names.
Bhasin, former executive of Oriental Bank of Commerce (OBC), had spearheaded and played a key role in setting up a joint venture company for life insurance of OBC in partnership with Canara Bank and HSBC (insurance). The move comes at a time when another public sector major, PNB, is entering both the life and non-life segment.
"We want to increase our revenue generating stream, that's why we are planning the life insurance foray. We have called for expression of interest to ensure transparent process and get better pricing negotiations. As of now, we would continue our bank assurance tie up with United India Insurance on the general insurance front," Bhasin added.
