To foray into insurance sector with a focus on SMEs, farmers and life products
Andhra Bank’s Mumbai zone general manager Anjaneya Prasad said that the bank is planning to expand and foray into the insurance sector with focus on SMEs, lending to farmers and launching a life insurance product, by next year, reported Business Standard.
Mr Prasad said: The thrust will be on disbursing loans to the SMEs and farmers. Business from Gujarat accounts for INR1,500 crore, and we are targeting INR2,000 crore business by next year.”
Mumbai zone has reported a business of INR22,000 crore for the quarter ended June 2009. The zone covers states like Maharashtra, Gujarat and Goa.
He further stated that till now, they have been the corporate agents of LIC, but from next year, the bank will launch its own insurance product in the country in a joint venture with the UK-based L&G Insurance Corporation. Two years ago Andhra Bank formed a joint venture with the UK-based L&G Insurance Co to foray into the insurance business and the product is now ready for the launch.
The bank has crossed INR105,280 crore business mark for the quarter ended June, and its net profit has surged by 230% to INR256 crore in the first quarter of fiscal 2009-10.
Andhra Bank has jointly signed a MoU with Bank of Baroda and Indian Overseas Bank to open its overseas branch in Malaysia. The branch is expected to commence operations next year.