A recent press report said that Punjab National Bank acquired a 30% stake in the Indian arm of the biggest US life insurer MetLife at an undisclosed amount.
The bank recently announced a marginal rise of 3.4% in its net profit at Rs 1,105 crore in the first quarter of the current financial year due to higher provisioning, decline in treasury income during the quarter.
Its Gross NPAs as a proportion of advances went up to 2% against 1.82% at the end of June last year. Net NPAs also rose to 0.86% during the year from 0.66%. The bank is likely to increase its interest rates which will make its loans such as home loan, car loan, personal loan and other loans costlier.
Reports said that the bank expects that the tie-up with MetLife India will give it the much-needed advantage in the insurance sector.
MetLife CEO and MD Rajesh Relan also said the insurer will provide insurance expertise which will act as an asset to the bank. Reports added saying that MetLife India will issue fresh equity and later buy stake from the other existing stake holders to keep its stake at 26%.