New Delhi, Dec 6 (UNI) Bank of India, Union Bank of India and the Dai-Ichi Mutual Life Insurance Co of Japan today signed a joint venture agreement for setting up a Rs 250 crore life insurance company.
The JV company is to be named as 'Star Union Dai-Ichi Insurance Company'.
The agreement among the three partners was executed in the presence of Finance Minister P Chidambaram here.
The Bank of India will hold 51 per cent stake, Dai-Ichi 26 per cent and 23 per cent by Union Bank of India.
The initial authorised capital of the new company will be Rs 250 crore.
The company will develop all class of products to suit various types of society. Apart from the network of the banks, the regional rural banks sponsored by the two banks would be involved in the sale of products of the company.
Dai-Ichi is a leading partner in the life insurance segment and among the top ten life insurance companies in the world.
The spokesman of the Bank of India said that the two banks will exploit their brand equity, widespread network, distribution expertise, and enriched experience in the financial sector along with the niche products developed by the Japanese company to tap the market.