Mumbai, March 6: Industrial Development Bank of India Ltd (IDBI) has shortlisted Fortis Insurance International of the Netherlands as the foreign partner for its life insurance foray in the domestic market.

IDBI, which has been planning for quite some time now to get into the life insurance business in the country, has taken an in-principle decision to sign a memorandum of understanding with Fortis for the proposed insurance venture.

IDBI today informed the stock exchanges that its board of directors has taken the decision, subject to the regulatory and statutory approvals of both the companies.

Utrecht-based Fortis has confirmed the negotiations with IDBI for signing an MoU for a bancassurance partnership. The agreement is expected to be inked soon.

“This potential partnership is in line with Fortis’s strategy to develop bancassurance in Europe and Asia,” a company release said.

Fortis already has bancassurance activities in China, Malaysia and Thailand.

Further announcements will follow when the MoU is signed. No party is ready to make any comment before that.

Selection of Fortis puts a cap on speculations about the prospective foreign partner for IDBI’s insurance venture. There were reports that the bank had shortlisted foreign partners in Axa of France, Fortis of the Netherlands, Generali of Italy and Tai Chi of Japan.