BoM scouting for partner in general insurance JV- Banking-Banking Finance -News By Industry-News-The Economic Times

We are in discussions with other potential partners that include foreign players as well.. However, we have not finalised any of them (partners) yet," BoM's Chairman and Managing Director M D Mallya said. BoM already has agreements with the Life Insurance Corp and United India Insurance for the distribution of insurance products.

Besides, it has also entered into a tie-up with Export Credit Guarantee Corp to distribute latter's export credit insurance products. Mallya said the bank decided to opt out of the insurance JV after it failed to reach certain agreements. There were no formal agreements signed so far..

We were discussing this option (to exit) and now decided to opt out as we could not agree certain terms," Mallya said. BoM had announced its intention to form a JV with the two firms last year and said it would hold per cent stake in the JV while Chennai-based firm, Shriram would hold a majority stake of 9 per cent and Sanlam of South Africa per cent.

A host of public-sector lenders such as Bank of India and Syndicate Bank are also on the lookout for 'suitable' partners to foray into Mutual Funds and Insurance business and is expected to come up with announcements this year.

Mallya also said the bank has targeted a total business of Rs 90,000 crore by fiscal from the current Rs 7, 00 crore as on March, 008. The bank achieved a growth of per cent in last fiscal with the total business growing to Rs 7, 00 crore from Rs 7, 00 crore a year-ago. This momentum is expected to be maintained in current fiscal as well," he said.

BoM has a total deposit-base of Rs, 000 crore as on March, while advances stood at Rs 9, 00 crore. The bank also plans to add about 0 branches this year to its current network of, 7 branches which would further strength its distribution network, Mallya said. We have branch licences, which would be utilised by September this year.

Opening of another 7 branches are also on cards in this fiscal," Mallya said The bank has identified retail business and enhancing the fee-based income as the key-focus areas in this fiscal, Mallya said, adding, "an equal importance would be given to the customer acquisition process as well."

Fee-based income contributed about per cent to the bank's total revenue in last fiscal while Current and Savings Accounts contributed about. 7 per cent, Mallya said. BoM, presently, has a customer-base of. Mallya said.

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