Allbank-led group chooses Sompo
The consortium had earlier shortlisted five foreign companies for this purpose.india Updated: Apr 06, 2006 17:25 IST
The consortium formed by Allahabad Bank and others for foraying into non-life insurance business have zeroed in on a Japanese firm Sompo as the overseas partner for the venture.
Sources in the bank saidthat Sompo would be foreign partner in the venture, which would be holding 26 per cent equity in the company and would be floated by the consortium.
The consortium had earlier shortlisted five foreign companies for this purpose.
According to sources, the India partners were Allahabad Bank, Indian Overseas Bank, Karnataka Bank and Dabur, which would hold 30 per cent, 19 per cent, 15 per cent and 10 per cent equity respectively. The initial seed capital for the venture would Rs 200 crore sources said.
Sources said the consortium would approach Insurance Regulatory Development Authority (IRDA) for obtaining approval for the same, after which a company would be formed.
According to sources, this would be first venture taken by public sector banks to make foray into the non-life sector.
Sources said this would offer tremendous opportunity for growth.