BUSINESS

BoB, Andhra Bank, U.K. firm form insurance venture

A. Saye Sekhar

HYDERABAD: Bank of Baroda (BoB), Andhra Bank and U.K.-based Legal & General Group have signed a memorandum of understanding (MoU) to form a joint venture (JV) for launching a life insurance company. The MoU was signed on November 16 and BoB informed the Bombay Stock Exchange about the formation of the venture on Monday.

While BoB would hold 44 per cent of the equity in the joint venture, Andhra Bank would hold 30 per cent, while the remaining 26 per cent would be held by Legal & General Group.

K. Ramakrishnan, Chairman and Managing Director, Andhra Bank, said that the joint venture was formed with Rs. 200 crore capital.

Licence

The consortium would apply for a licence with the Insurance Regulatory and Development Authority (IRDA).



The joint venture would mainly focus on the rural and semi-urban market. For, only 20 per cent of the people in India were insured.

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