PNB buys out insurance JV, sells MF बिज़
* PNB buys partners' stakes in life insurance joint venture* PNB sells entire stake in MF venture to Principal
* Scouting for strategic partners for life, non-life ventures
India's state-run lender Punjab National Bank restructured its insurance and mutual fund joint ventures by buying out its partners' stake from the insurance venture and selling its entire stake in the mutual fund joint venture, the bank said in a release on Thursday.
PNB bought its partners'--Principal Financial Group Mauritius (PFG) and U K Paints--stake of 26 percent and 32 percent, respectively, from the insurance joint venutre, Principal PNB Life Insurance Company.
After taking over the stake from PFG and others, PNB's holding in Insurance Broking Company is now 81 percent and in Principal PNB Life Insurance Company Ltd is 88 percent, PNB release stated.
The bank is now looking at strategic partnerships in life and non-life insurance business and has also invited expressions of...interest for the same.
The Delhi-based bank also bought Principal's 26 percent stake and Berger Paints' 25 percent in the Insurance Broking Company. On the other hand, PNB sold its entire 30 percent stake in mutual fund venture to Principal, thereby exiting from the business. However, the bank will continue to distribute products of Principal PNB Asset Management company for next three years.
PNB and another state-run lender Vijaya Bank had entered into a partnership with Principal for life insurance and mutual fund joint ventures some years back.
However, the joint ventures had run into rough waters and the banks wanted to exit the alliance since the last few years.
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