The Hindu Business Line : Canara Bank all set for life insurance foray

Talking to Business Line, Mr M.B.N.Rao, Chairman and Managing Director, Canara Bank, said, " We are in the process of tying up all issues. We are in the final stages of discussions with one of the top insurance companies in the world. We'll be making an announcement within the next few weeks."

Six of the top 10 life insurance companies in the world are already in India, in alliance with local partners.

It is not clear at the moment as to who would be the local partner for Canara Bank in this new venture.

Except for State Bank of India, the Reserve Bank of India has not been in favour of any single public sector bank owning more than 30 per cent stake in an insurance company.

A number of public sector banks have therefore decided to venture into this business in alliance with each other.

At least three of these alliances, headed by IDBI, Punjab National Bank, and Bank of India respectively, seem set to join the life insurance industry in the next fiscal. There are 16 players currently operating in the life insurance business in the country.

Other prospective entrants into life insurance business include Bank of Baroda and Oriental Bank of Commerce.

More Stories on : Life Insurance | Public Sector Banks

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