The Telegraph
Since 1st March, 1999
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AllBank pact with ICICI Pru

Calcutta, Sept. 10: Allahabad Bank has entered into a strategic bancassurance tieup with ICICI Prudential Insurance Company Limited for distribution of life insurance products in the city.

This bancassurance arrangement is based on the ‘referral model’ where ICICI Prudential Insurance Company would offer its entire bouquet of life insurance products to the customers who walk into Allahabad Bank’s branches.

To begin with, the bank is offering insurance products from its retail banking boutiques. After the initial launch in Calcutta and Delhi the arrangement will be spread to other locations in Uttar Pradesh, Madhya Pradesh and Bihar.

“We expect to sell 5,000 policies through this arrangement by March next year. It is expected that the synergic effect of this tieup would not only make Allahabad Bank a front-runner in the bancassurance business but it will also help the bank earn a sizeable fee-based income. By December, 300 branches will be offering life insurance products,” chairman and managing director B. Samal said.

Shikha Sharma, managing director of ICICI Prudential Life Insurance said at the meeting that 20 per cent of the company’s insurance business is through bancassurance.” Sharma said that on June 30, 2002, the company had issued 150,000 policies with a sum assured of over Rs 4,100 crore and premium income to the tune of Rs 165 crore.

Commenting on the health of the bank, Samal said it aims to reduce non-performing assets to 9.6 per cent this year. Currently, the bank’s NPAs stand at 10.6 per cent of the total advances.

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