Indian Bank's focus on insurance

Corporate Reporter

Pact with PNB Principal to offer one stop insurance solution to customers

CHENNAI: Indian Bank has entered into an alliance with PNB Principal Insurance Advisory Co. Pvt. Ltd. in the insurance advisory business and with PNB Principal Financial Planners Pvt. Ltd. in the financial planning business.

Addressing presspersons here on Wednesday after signing the agreement, K. C. Chakrabarty, Chairman and Managing Director of the bank, said the alliance with PNB Principal would help in providing a one-stop insurance solution to the 1.5 crore customers of the bank. It was noteworthy that under this arrangement the bank would be acting as the agent of the customers, instead of that of the corporate. The bank would be offering 30 financial products - both life and non-life - under one roof.

According to Sanjay Sachdev, Country Manager, Principal Financial group, banks have currently emerged as the largest distribution channels for financial investment options and the partnership with Indian Bank would make a range of investment solutions more accessible to retail investors of the bank.

Q3 net profit up 66 p.c.

Later announcing the bank's third quarter results, the CMD of Indian Bank said the bank continued to record impressive performance for the third quarter and the net profit has risen by 65.5 per cent to Rs. 123.16 crore from Rs. 48.74 crore. This was despite a 25 per cent rise in salary cost due to wage revision and dwindling profits from sale of investments. The capital adequacy was comfortable at 14 per cent and the credit quality remained healthy with net non-performing advances at 0.9 per cent of net advances.

The bank would be introducing depository services soon by becoming a depository participant of National Securities Depository Limited (NSDL), Mr. Chakrabarty said. It proposed to undertake selling of pure gold coins to the public through select branches. It would also be launching 'Bharat Card', an exclusive credit card intended to empower the common man. Besides there were plans to launch global credit cards - Gold and Classic, the CMD said.

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