The Hindu Business Line : BoB enters life insurance biz

Legal & General has over 10 per cent of market share in the UK. The bank will hold 50 per cent stake in the proposed venture while Legal and General will hold 26 per cent. "We will shortly identify our third partner in the joint venture and will apply for approvals to the Reserve Bank of India and the Insurance Regulatory and Development Authority," Dr A.K. Khandelwal, Chairman and Managing Director, Bank of Baroda, told press persons here on Friday.

The insurance venture will have an initial capital of about Rs 200 crore, he said.

Malaysian subsidiary

The bank also plans to establish a subsidiary in Malaysia, with Punjab National Bank and Andhra Bank as its partners. Bank of Baroda will hold 40 per cent stake in the subsidiary while PNB and Andhra Bank will hold 35 per cent and 25 per cent respectively. Earlier, the bank had announced Oriental Bank of Commerce and Bank of Maharashtra as its partners for the Malaysian subsidiary.

The bank will shortly apply to the Malaysian regulator for the necessary approvals for setting up the subsidiary, Dr Khandelwal said.

The subsidiary is likely to have an initial capital of around Rs 330 crore, said a senior official from the bank.

Bank of Baroda also plans to open a representative office in Australia and subsidiaries in Trinidad & Tobago and Ghana.

On the Indian cricket team's dismal performance in the World cup and its possible impact on the bank's association with its brand ambassador and skipper Rahul Dravid Dr Khandelwal said, "Rahul Dravid continues to be our brand ambassador and we are proud to have him."

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