UCO Bank finally short-listed three foreign partners for general insurance biz

UCO bank has finally short-listed three foreign partners for its proposed general insurance business.

UCO Bank Chairman and Managing Director Mr S K Goel stated, “We have short-listed 3 foreign player for the proposed venture and awaiting RBI approval for moving in the non-life business”.

In the proposed general insurance business the bank will have the major hold of stakes of 30 per cent whereas the foreign partners will have 26 per cent stake as per the present regulatory structure, he stated. The remaining shares will be taken by 2-3 domestic partners including public sector or private sector banks.

He further added that 7 domestic companies have shown interest to become partners in the venture. UCO Bank will be responsible for promoting and distribution in the business, while foreign and private partners will be responsible for the domain expertise.

Mr Goel said, “as soon as we get RBI approval we will sign Shareholders' Agreement and apply to IRDA for license.” Regarding investment required, Mr Goel said, the paid-up capital of the venture would be about Rs 150 crore. The bank will be investing around Rs 45 crore for the promotion of the proposed general insurance company.