Canara Bank and CGU Insurance entered into a distribution relationship agreement whereby branches of Canara Bank will market products of CGU's Indian joint venture, Dabur CGU Life Insurance company.
"CGU's products would be initially marketed through 50 branches and later the number would increase the number," Canara Bank's chairman and managing director R V Shastri said at a press conference.
The opening up of insurance sector by the government has enabled a number of foreign insurance companies to enter the market and Canara Bank has after a detailed study decided to have a strategic alliance with Dabur CGU.
Canara bank is in the process of wiring up all the major networks by the end of the current financial year. The bank would also have networked all the inter-city branched by middle of the next calendar year. Then the bank would migrate to internet banking.
Canara bank has a network of 2,406 branches in India apart from one branch in London. The branches in India are spread over 25 states and four union territories of the country, which are administered through 13 circle offices and 32 regional offices. Canara Bank has deposits of Rs 23 million, which would grow to Rs 30 million by the end of the year.
"We are delighted by the prospect of working with Canara Bank and look forward to launching this business in the new year," Stuart Purdy, CEO of Dabur CGU said.
Dabur CGU is a joint venture between CGNU plc and Dabur Group. CGNU is the UK's largest insurance group and the world's sixth largest insurer.
The group has over $320 billion of assets under management.
