Chennai, Jan. 25
INDIAN Bank will offer insurance advisory and financial management services in its branches. It has tied up with PNB Principal Insurance Advisory Co Pvt Ltd for offering insurance services to its customers and with PNB Principal Financial Planners Pvt Ltd for the financial planning business.
The bank has taken a 2 per cent equity stake in the Rs 5-crore equity capital of PNB Principal Insurance Advisory Co, according to the Indian Bank's Chairman and Managing Director, Mr K.C. Chakrabarty.
Indian Bank, which is a corporate agent for selling life and non-life insurance products, will sell products of more than 30 life and general insurance companies. It will also sell an equal number of investment solutions through its branches.
Through its tie up with PNB Principal Insurance Advisory, Indian Bank will offer services such as risk assessment, insurance portfolio analysis and placement, insurance portfolio administration and claims management. Under the tie-up for financial management, PNB Principal Finance Planners will provide support to the bank in the areas of financial planning, investment advisory, research, systems and business development.
According to Mr Chakrabarty, in the first nine months of this financial year, Indian Bank earned Rs 1.34 crore through life insurance premium and Rs 89 lakh through non-life insurance business. The bank is a corporate agent for HDFC Standard Life Insurance Company and United India Insurance Co Ltd.
Mr Sanjay Sachdev, Country Manager - India, Principal Financial Group, was confident that the bank's income would jump through the tie up with the two principal group companies.
Net up 65 pc in Q3:The bank's net profit for the third quarter of this year was Rs 123.16 crore, up 65 per cent from the Rs 74.42 crore in the corresponding period last year. For the nine months of this year, the net profit was Rs 365.31 crore against Rs 228.52 crore for the corresponding period last year.
Net interest income improved by 11.78 per cent to Rs 369.07 crore for the third quarter, compared to Rs 330.17 crore. The bank's overall business was Rs 60,233.65 crore, a 22.68 per cent growth. Total deposits grew 20 per cent to Rs 39,013.65 crore and net advances by 27.4 per cent to Rs 21,220 crore. The bank recovered Rs 291.40 crore during the nine-month period ended December 31, 2005, against Rs 208.10 crore during the corresponding period of last year. MrChakrabarty was confident of recovering Rs 400 crore by the end of this year.