Date:15/02/2006 URL: http://www.thehindubusinessline.com/2006/02/15/stories/2006021501511900.htm

Back Karnataka Vikas Grameena Bank enters insurance business

Our Bureau

MANGALORE: Karnataka Vikas Grameena Bank — a regional rural bank sponsored by Syndicate Bank — formally launched its entry into the insurance business on Monday.

The bank, which has entered into an agreement with Bajaj Allianz Life Insurance Company Ltd to sell its products, sold more than 3,000 policies under various schemes on Monday at Dharwad. It collected premiums of around Rs 1 crore on the first day.

A bank release said here on Tuesday that Mr R.S. Hugar, former Chairman and Managing Director of Corporation Bank, who launched the insurance products, said the relaxation in the policies had helped regional rural banks to provide more services to people. The Chief Executive Officer of Bajaj Allianz Life Insurance Company Ltd, Mr Mukul Gupta, said the strong network of branches of Karnataka Vikas Grameena Bank prompted the company to go in for an agreement with the bank.

Mr B.S. Surendra, Chairman of Karnataka Vikas Grameena Bank, said the rural areas had great potential for insurance business.

Mr Justice K. Sridhar Rao of Karnataka High Court presided over the function.