Life Insurance Corporation of India, the Country’s largest Life Insurer entered into a strategic agreement with Punjab National Bank (PNB) - the largest nationalized Bank, under referral arrangement. The Agreement for the tie up was signed in the presence of Shri T.S. Vijayan, Chairman of LIC of India and Dr. K.C. Chakrabarty, CMD of Punjab National Bank. This tie up will enable the Bank’s customers to have access to the wide range of products of LIC.
LIC of India is a dominant player in the insurance market. LIC’s total premium income was Rs. 1,49,706 crores and its total assets stood at Rs. 8,03,820 crores as at 31.3.2008. Today LIC is recognized as the No. 1 Service Brand in the entire insurance industry and with a vast network of 2048 branches is catering to the needs of the country’s vast population. LIC so far has tied up with 31 Banks through Corporate Agency model and with 46 Banks through Referral Model which include Private Sector, Public Sector, Regional Rural Banks as well as Co-operative Banks for developing Bancassurance.
With over 37 million satisfied customers and over 4589 offices, under Core Banking Solutions (CBS), which facilitates “any time, any where” banking, Punjab National Bank has continued to retain its leadership position among the nationalized Banks. PNB has achieved significant growth in business which at the end of March 2008 amounted to Rs 2,85,959 crores and its assets are more than Rs 1,99,000 crore. PNB is ranked as the 3rd largest bank in the country (after SBI and ICICI Bank) and during the FY 2007-08, with 43% share of low cost deposits, the bank achieved a net profit of Rs 2,049 crore, maintaining its number ONE position amongst its peers.
The Chairman of LIC of India and CMD of Punjab National Bank have expressed confidence that this tie up will be a significant milestone in the financial services sector of the country.
