PNB buys stake in JV companies from Principal Financial Group
merisarkar news service
New Delhi, January 14, 2011
EoI invited for insurance Biz: Kamath
Punjab National Bank had signed a Memorandum of Agreement with Principal Financial Group of Mauritius (PFG) and Vijaya Bank for restructuring of their existing joint ventures.
The execution of the documents was subject to regulatory approvals. After receipt of the regulatory approvals, PNB on January 12, 2011 has completed the transactions and bought PFG and UK Paints' stake of 26% and 32% respectively in Principal PNB Life Insurance Company Ltd and also PFG and Berger Paints stake of 26% and 25% respectively in Insurance Broking Company.
On the other hand PNB sold its entire 30% stake in Mutual Fund distribution JV Company to PFG. The Bank will now be free to distribute the Mutual Fund Products of other parties.
However PNB will continue to support Principal Pnb Asset Management Company Pvt Limited for three years and continue to distribute Mutual Fund products of Principal Pnb Asset Management Company Private Limited, the JV with PFG.
After taking over the stake from PFG and others, PNB’s holding in Insurance Broking Company is now 81% and in Principal PNB Life Insurance Company Ltd is 88%.
PNB said in a statement, "The bank is looking for opportunities in both life and non-life business. The bank will evaluate these opportunities and may form strategic tie-ups with interested parties and is open to any operating model – whether existing in the industry or new – for these strategic partnerships. In this way, the Bank contemplates potential benefits to its customers by making available attractive insurance products."
The bank has already invited expression of interest (EoI) for strategic partnership in life insurance and non life insurance business from reputed Indian and international companies interested in partnering with the Bank in the insurance business and the last date for submission of EOI is 20th January 2011.
