BoB Likely To Foray Into Life Insurance Biz In 6-7 Months

(RTTNews) - Bank of Baroda or BoB said its insurance venture with the UK-based Legal and General group is likely to start business in the next six-to-seven months, reported the PTI. The Chairman and Managing Director of BoB M D Mallaya reportedly said the bank is in the process of filing initial regulatory clearance application and would obtain all other necessary approvals by the first quarter of the next fiscal.
Mallaya said the three-way lift venture was formed in November 2007 with an initial paid-up capital of Rs.200 crore. BoB would hold 44% share in the venture, followed by Andhra Bank with 30% and the remaining stake is to be held by the foreign partner. The two banks have over four crore customers and together have a network of about 4,000 branches across the country.
The UK partner will recruit over 5,000 professionals in India in the next five years. Legal and General Group, having a market value of about GBP 8 billion, employs 8,000 people in the UK.
As of now, there are 21 players in the Indian life insurance sector.
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