OBC plans to enter life insurance business

Kolkata, Jun 23 (UNI) Oriental Bank of Commerce (OBC) is planning to foray into life insurance business, its chairman and managing director K N Prithviraj said today.

"We are looking at alternative areas of growth and planning to enter into life insurance business with joint venture partners," Prithviraj said at the Banking Conclave organised by FICCI.

"The plans are being discussed at the board level and a formal decision will be taken within the next six months. Oriental Bank will be looking at joint ventures with other banks and multi-national companies for entry into the life insurance business," he said.

OBC with nine million customers is aiming at Rs 100000 crore business in 2006-07 as against Rs 89000 crore in the previous fiscal, Prithviraj said.

He said the Bank has got board approval for raising upper tier II capital of Rs 1000 crore in the current fiscal. "We have already raised Rs 500 crore of the upper tier II capital and rest will be raised within a short time," he said.

"The Bank will open a representative office in Dubai by December this year," the CMD said.

The Bank is amortising Rs 1200 crore of accumulated losses of Global Trust Bank after taking it over. The amortisation would be complete in another three years, the CMD said.

"The Bank is aiming at a 20 per cent growth in the deposit base of Rs 52000 crore this year," he said.

OBC notched up Rs 803 crore of net profit in 2005-06 and occupied the fourth position in respect of net profits by nationalised banks in the country, Prithviraj said.

UNI TJP BA RN1458