Bank of Rajasthan, Bajaj Allianz team up

Mumbai: Bank of Rajasthan (BoR) has signed a memorandum of understanding with Bajaj Allianz for its entry into the general insurance market.

BoR will be the sole corporate agent of Bajaj Allianz in the state of Rajasthan. But this does not stop the bank from marketing policies in other states.

Says BoR managing director K M Bhattacharya: With lending rates steadily decreasing in the banking sector, most banks have started looking at other revenue streams. BoR has already commenced its demat facility for investors and this insurance foray is the second product of our bank towards increasing fee-based income. This will also increase the profitability and overall growth of business of the bank.

We are very positive about the tie-up with BoR. With a wide network of branches, BoR is the ideal partner to help Bajaj Allianz penetrate the urban, semi-urban and rural markets in Rajasthan. We will further target the banks customers to sell corporate products as well, says Bajaj Allianz chief executive officer Sam Ghosh. Bhattacharya say initially Bajaj Allianz will start the business of distribution of insurance products on their own in the banks branches in Jaipur, which will be followed by the launch in the rest of the country.