MUMBAI: Punjab National Bank will buy out the 58% stake held by two of its partners in a proposed life insurance joint venture, which is awaiting regulatory approval. PNB holds a 30% stake in the proposed life insurance venture, called Principal PNB Life Insurance Company, in partnership with Mauritius-based Principal Financial Group (26% stake), domestic firm UK Paints (32%) and Vijaya Bank (12%).
The company never got regulatory approval from IRDA due to differences between the partners. PNB will buy the entire 26% stake held by Mauritius-based Principal Financial Group in the life insurance company, as well as domestic firm UK Paints' 32% participating interest, the bank informed the Bombay Stock Exchange.
However, the other local partner Vijaya Bank would remain with the joint venture. Following the change in partnership, the name of the proposed joint venture would also be changed, sources said. Post regulatory approval, the stake of PNB in the venture would go up to about 88%.
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