Company is also weighing the prospects of setting up an asset management company and roping in a partner for the wealth insurance business
Corporation Bank has decided to foray into the non-life insurance business in India. The bank has commenced talks with a foreign player for a joint venture (JV), where a third partner is proposed to be approached – reported in Business Standard.
It is also weighing the prospects of setting up an asset management company and roping in a partner for the wealth insurance business.
Moreover, the bank intends to establish a company to jointly manage the credit card operations with Life Insurance Corporation, which holds a 26.32% stake in Corporation Bank.
J M Garg, CMD of Corporation Bank, said: “Ultimately, the understanding is to have a separate company. But LIC wants to have a base of around 100,000 card holders before we set up a separate company. We may also become a part of it. The company could, however, be two years away, as LIC is looking to have a base of around 50,000 cards by the end of the current financial year.”
Life Insurance Corporation of India being a shareholder, Corporation Bank is unable to set up a separate life insurance venture.