, India

Punjab National Bank eager to expand insurance operations

Dissolving JV with Vijaya Bank and Principal Group would enable Punjab National Bank to become more competitive.

PNB's newly appointed chairman & managing director (CMD) KR Kamath says that the bank offers not just the customer base but also branch network and brand for extending insurance services.

"We are in the process of exiting our existing insurance joint venture with Vijaya Bank and Principal Group. Once the process is completed there is no reason why PNB should not look at the huge opportunity available for banks to retail insurance products," he said in a report inEconomic Times.

The JV's business model, it may be recalled, was disallowed the Insurance Regulatory & Development Authority (IRDA) though the latter permitted PNB to offer insurance through the referral route. Under the referral mechanism, PNB can only supply potential business ‘leads’ for the insurance company—LIC in this case to pursue. The JV was to offer both life insurance and non-life insurance products.

PNB's eagerness to have a re-look at insurance comes at a time when many of its peers—State Bank of India or Bank of Baroda or Canara Bank—have floated their life ventures to leverage on a new business model of insurance retailing called bancassurance.

Follow the link for more news on

Join Asian Banking & Finance community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Top News

What is Lorem Ipsum?
What is Lorem Ipsum? Lorem Ipsum is simply dummy text of the printing and typesetting industry. Lorem Ipsum has been the industry's standard dummy text ever since the 1500s, when an unknown printer took a galley of type and scrambled it to make a type specimen book. It has survived not only five centuries, but also the leap into electronic typesetting, remaining essentially unchanged. It was popularised in the 1960s with the release of Letraset sheets containing Lorem Ipsum passages, and more recently with desktop publishing software like Aldus PageMaker including versions of Lorem Ipsum.

Exclusives

Sed molestie interdum dui sit amet egestas
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout.
CIMB Niaga leads the way in captivating Indonesia’s youth
The bank’s digital solutions are winning over younger generations with 3.2M mobile users and 96% digital transaction rate in 2023.