PNB KEEN ON PLAYING ACTIVE ROLE IN INSURANCE MARKET

Mr. K.R. Kamath, Chairman and Managing Director, Punjab National Bank, has said that PNB is keen to play a more active role in the insurance market against the referral model for distribution of insurance, which was adopted earlier. The bank is already in the process of exiting its insurance joint venture with Vijaya Bank and Principal Group. The Joint Venture's business model was disallowed by the Insurance Regulatory & Development Authority (IRDA) though PNB was permitted to offer insurance through referral route. Under the referral mechanism, PNB can only supply potential business "leads" to the insurance company. The JV was to offer both life insurance and non-life insurance products.
PNB's eagerness to have a re-look at insurance comes at a time when many of its peers - SBI or Bank of Baroda or Canara Bank - have floated their life ventures to leverage on a new business model of insurance retailing called bancassurance. This model, popularised by SBI through its life insurance company - SBI Life aims at using the branch network for selling insurance products.
PNB, the country's largest PSU bank, after SBI, is looking to more than double its total business to Rs.10 lakh crore by 2013 and hopes to have a customer base of 150 million and have as many as one lakh customer touch points, which would include branches, banking kiosks and banking correspondents.
Source: http://economictimes.indiatimes.com/features/the-sunday-et/economy/PNB-keen-on-playing-active-role-in-insurance-mkt/articleshow/5256164.cms