The Hindu Business Line : BoM opts out of insurance venture

Mangalore, April 2 The Pune-based Bank of Maharashtra has opted out of its proposed joint venture with the Chennai-based Shriram Financial Services Holdings Pvt Ltd and Sanlam Ltd of South Africa for the general insurance foray.

On Wednesday, the bank informed BSE that the terms of the joint venture could not be finalised as per the bank’s requirement and hence the bank had opted out of the said joint venture. On December 22, 2006, the bank had informed the stock exchange about its decision to establish general insurance joint venture in partnership with Shriram Financial Services Holdings Pvt Ltd and Sanlam Ltd.

When Business Line contacted Mr M.D. Mallya, Chairman and Managing Director of Bank of Maharashtra, he said: “The terms and conditions were mutually acceptable; we were not able to ultimately come to terms.” Mr Mallya did not give further details on this matter.

Asked if the bank is planning to have joint ventures for its insurance foray, he said it depends on the opportunity available. “We are looking for some opportunities. As and when it comes, we will be able to take up,” he said.

When enquired if the bank has any proposals before it in this matter, he said some proposals are there. “But nothing in advanced stage,” he added.

On Wednesday, the scrip of Bank of Maharashtra closed at Rs 50.45 on BSE as against the previous closing of Rs 48.80.

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