Punjab National Bank (PNB) is slated to sign a memorandum of understanding in few weeks for its insurance venture. The insurance venture will be a four-way venture, with PNB taking up 15 per cent stake, Vijaya Bank 5-8 per cent, Zurich 26 per cent and the remaining to be held by the Hero group and associates, said PNB chairman and managing director S S Kohli.
PNB had received the RBI approval for the foray into both the life and the non-life insurance sectors. Kohli said the paid-up capital of the venture is likely to be around Rs 100 crore.
When asked about the joint venture partner for PNB Mutual Fund, Kohli said nothing had been finalised. "The mutual fund made profits after five years and we are also examining whether we want a partner or not. All our assured return products have been terminated and the products recently launched are performing well. We will approach the Reserve Bank of India to float new funds," Kohli said.
The bank would finalise its results under the US GAAP in 20 days. It is, however, undecided on whether it should go in for a listing at present, the current market condition is depressed.
For the half year, Kohli said, the bank had witnessed a seven per cent rise each in deposits and advances.
