Bank of Maharashtra pulls out of proposed Insurance JV
April 5th, 2008 | by admin |Mumbai, April 3: Public-sector lender Bank of Maharashtra (BoM) on Thursday said it has opted out of the proposed general insurance joint venture with Chennai-based Shriram Financial and Sanlam of South Africa, after failing to reach agreements.
“There were no formal agreements signed so far…we were discussing this option (to exit) and decided to opt out as we could not agree to certain terms,” BoM’s Chairman and Managing Director M D Mallya said.
The trio had entered into an informal agreement last year to form a general insurance tie-up. Accordingly, BoM had agreed to hold a 15 per cent stake in the joint venture. The Shriram group was be the majority partner with a 59 per cent stake and Sanlam to hold a 26 per cent.
BoM, already, has insurance tie-ups with United India Insurance and Life Insurance Corporation of India for the distribution of non-life and life insurance products, respectively.
On Wednesday, the bank had announced a tie-up with Export Credit Guarntee Corporation of India (ECGC) for the distribution of the latter’s export credit insurance products.
