The Hindu Business Line : BoB life JV to be operationalised next fiscal

KOLKATA: The life insurance joint venture floated by Bank of Baroda (BoB), Andhra Bank and Legal & General of UK would be operationalised during the first quarter of the next financial year.

Mr M D Mallya, Chairman and Managing Director of Bank of Baroda said here today that all formalities were now complete. “The first policy would be sold in the first quarter of next fiscal.”

In the life JV, BoB would hold 40 per cent, Andhra Bank 34 per cent. The UK partner would hold the remaining 26 per cent.

Mr Mallya, speaking at the FICCI Banking Conclave, said that another JV floated with Pioneer for entering the mutual fund business would start operations next month. The JV would have an equity base of Rs 200 crore.

Speaking about BoB, Mr Mallya said that during the current fiscal, the bank has set a target business of Rs 3,10,000 crore, against Rs 2,59,000 crore in 2007-08. The bank is looking at a deposit growth of 20 per cent, and a 23 per cent growth in advances .

He said that BoB would open a representative office in China and branches in Malaysia and Australia. By March 2009, BoB would have 3,000 branches. The present number is 2853. The bank's treasury operations were under pressure, he said.

With a capital adequacy ratio of 12.94 per cent, Mr Mallya said that there was no need for fund raising at the moment. - PTI

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