MUMBAI: Jammu & Kashmir Bank is planning to exit PNB MetLife Insurance by selling its 5 per cent stake in the life insurance joint venture, an official said today.
“Initial talks to fully exit the insurance business by selling the entire 5 per cent stake in PNB MetLife Insurance are on and it may help raise over Rs 500 crore,” the official told PTI.
Bank Chairman and Chief Executive Mushtaq Ahmed had last October said the lender was considering to fully exit the investment. He had hinted the bank would wait for the right pricing to sell out.
Ahmed was not immediately available for comment on the possible stake sale.
PNB MetLife India Insurance Company Limited (PNB MetLife) is a joint venture between MetLife International Holdings Inc. (MIHI), Punjab National Bank Limited (PNB), Jammu & Kashmir Bank Limited (JKB), M. Pallonji and Company Private Limited and other private investors, with MIHI and PNB being the majority shareholders.
In 2012, the bank had cut its stake to 5 per cent by selling 6 per cent in the insurance venture and raised Rs 190 crore.
State-run Punjab National Bank holds 26 per cent in the venture, while US-based MetLife has 26 per cent stake.
The Srinagar-headquartered lender, held majorly by the state government, acts as a corporate agent selling policies of the life insurer. (AGENCIES)
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