Andhra Bank will soon launch an insurance company in a joint venture with another public sector lender Bank of Baroda and UK-based insurance and mortgage fund manager Legal and General.
The Bank had recently received R2 approval for the joint venture, in which there will be a 30 per cent equity participation of Andhra Bank, 28 per cent of Legal & General and the remaining of Bank of Baroda. ''The products are ready, the talks are on with the IRDA for their release,'' Bank Chairman and Managing Director R C Reddy told a media conference here after announcing the H1 results for financial year 2009-2010 today.
Andhra Bank has been selling products of the state-owned LIC since 2005 on a commission basis. The Trial Commission arrangement was on till March 2010. In between, the Bank decided to launch the Insurance and moved the Union Finance Ministry and Reserve Bank of India (RBI), which granted permission, he said.
With the R2 approval, Andhra Bank is in talks with LIC for severance of the Trial Commission arrangement before March 2010.
It is also holding discussions with the IRDA on the products designed by Legal & General and tailored to meet demands in India.
Mr Reddy said the insurance products from the JV are likely to hit the market by July 2010.
POSTED BY:
KEDARSAN BISWAL
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