The Hindu Business Line : PNB, Principal may clinch insurance venture in June

PUNJAB National Bank and Principal Financial Group of the US will meet early June to finalise setting up of the life insurance joint venture, the PNB Chairman and Managing Director, Mr S.C. Gupta, told Business Line today.

The life insurance company would be a four-way joint venture of PNB, Principal, Vijaya Bank and Berger Paints.

Incidentally, PNB and Principal already have two joint ventures, one for marketing mutual funds and the other for marketing life and non-life insurance products of other insurance companies.

Mr Gupta was here in connection with the launch of `Large Corporate Branch (LCB)'. The LCBs are specialised branches of PNB, which deal with the accounts of corporates with credit limit of at least Rs 25 crore.

To increase the banks' performance, Mr Gupta outlined a 5 point strategy - mobilising low cost deposits, credit expansion, reducing the level of gross NPAs, better asset-liability management and ensuring career growth to the staff.

"This will help achieve the target growth of 18-20 per cent for 2005-'06," he said.

Mr Gupta said the bank intended to set up subsidiary or branch in Canada, Hong Kong and Singapore.

PNB is today present with Representative Offices in Kazakhstan, UK and China and with a branch in Kabul.

A Representative Office is to be opened shortly in Dubai, Mr Gupta said.

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