Proposed venture is expected to be up and running by the end of the current fiscal, and the first policy would be underwritten by March 2010
Bank of Baroda (BoB) has announced that its life insurance venture with the UK-based Legal and General Group is likely to begin its operations in the next seven months – reported The Statesman.
According to the bank, the proposed venture would be up and running by the end of the current fiscal and the first policy would be underwritten by March 2010.
The three-way venture, formed in November 2007, would have initial paid-up capital of INR2 billion. While the lead partner BoB would have 44% share in the venture, another domestic partner Andhra Bank would hold 30% share. The remaining 26% would be with the British insurance firm.
MD Mallya, chairman and managing director of Bank of Baroda, said: “We have made considerable progress and secured R1 (initial regulatory clearance). The bank has applied for R2 clearance from the IRDA. We are hopeful that in the next four to five months all the necessary regulatory approvals would be obtained.”
Mr. Mallya stated that the company has appointed P Nadagopal, former CEO of Reliance Life, as the head of the venture. Other senior-level appointments would be done in due course of time.