Mumbai: State-run Punjab National Bank Ltd said on Wednesday it will buy out the stakes of its joint venture partners in the life insurance and insurance broking businesses.
Punjab National Bank will buy out 26% of Principal Financial Group of Mauritius and 25% of Berger Paints in its insurance broking company, it said in a statement to the Bombay Stock Exchange.
It will also buy out Principal’s 26% and UK Paints’ 32% in its life insurance JV, Principal PNB Life Insurance Company, it added.
It will sell its 30% stake in distribution JV to Principal, while other partner, Vijaya Bank, will also sell its 5% holding, it said.
The bank said it will continue to support the asset management JV with Principal and Vijaya Bank for another 3 years, but will decide the future course of action on the insurance business after the deals are finalised.
Ahead of the announcement, shares in Punjab National Bank ended up 0.4% at Rs1,050.15 in a flat Mumbai market.