Date:27/04/2004 URL: http://www.thehindubusinessline.com/2004/04/27/stories/2004042701771300.htm

Back Syndicate Bank to sell United India policies

Our Bureau

Chennai , April 26

SYNDICATE Bank is to sign a Memorandum of Understanding with United India Insurance to sell the latter's policies, said its Chairman & Managing Director, Mr Michael Bastian, on Monday.

The understanding would most probably be signed in May, said Mr Bastian at a press conference. He added that the bank was likely to tie up with another general insurance company to sell its products, and had sought the Reserve Bank's permission to start a subsidiary for the purpose. Insurance regulations do not permit a company to sell more than one company's policies at a time.

Mr Bastian felt that size and position in the banking hierarchy were important. The bank hoped to do more than Rs 80,000 crore (Rs 64,330 crore) of business in the current financial year, he added.

The bank planned to open three overseas representative offices (South Africa, Dubai and Singapore) and focus on retail advances. In wholesale banking, "We would go for mid-size exposures," said Mr Bastian.

In response to a question, Mr Bastian said Syndicate Bank's current financial indicators were good enough to allow it to announce a dividend for its shareholders without the Reserve Bank's permission.