TWO PUBLIC sector banks and a foreign insurance company have now joined hands towards a joint venture in the life insurance sector.
Bank of India, Union Bank of India and leading Japanese insurance company Dai-ichi Mutual Life Insurance Company signed an MoU towards setting up of Joint Venture Life Insurance Company. The MoU envisages a capital stake of 51 per cent by BoI, 26 per cent by Dai-ichi and 23 per cent by Union Bank.
“The joint venture will add value to shareholders wealth and provide long-term avenue for income growth to all the three partners,” said Bank of India’s chairman & managing director, M Balchandran.
Sharing his opinion, after the signing of MoU, Union Bank of India’s MD, MV Nair said the two PSBs entered into a formal working arrangement to leverage their network infrastructure and to pool their skill sets to enter the foray.
“The strength of two banks combined with Dai-ichi’s over 100 years long know-how and domain knowledge makes it an ideal
tripartite partnership,” added Dai-ichi Life director & senior marketing executive K Iki.