Punjab National Bank (PNB) has invited expression of interest (EoI) from Indian and foreign companies for strategic partnerships in insurance business.
The bank said that it is considering both the life and non-life segments as it evaluates its option, the country's second-largest pubic sector lender said in a statement yesterday.
In June, PNB bought out stakes of its insurance JV partners Principal Financial Group of Mauritius and Berger Paints in a planned life insurance joint venture as the government-owned bank wanted to acquire the entire 26 per cent stake of Principal Financial Group and 32 per cent participating interest of domestic firm UK (Berger) Paints in Principal PNB Life Insurance Company Ltd.
While PNB's stake at the time stood at 30 per cent in the proposed joint venture, the remaining 12 per cent is with Vijaya Bank.
PNB had set up a committee to conduct an evaluation of the prospects of entering the insurance business. Principal PNB Life Insurance was incorporated in 2005 with an authorised capital of Rs110 crore for commencement of the life insurance business.
The company's paid up capital stood at Rs2 crore.