Zurich Fin looks for new insurance partner

Bangalore: Zurich Financial is looking for a partner for its insurance business following the Reserve Bank of India (RBI) disallowing the proposed three-party venture with the DCM Shriram group, Vijaya Bank and Punjab National Bank (PNB).

Zurich is on the lookout for a possible partner and we are also keeping our eyes and ears open, says a senior Vijaya Bank official. Declining to detail a timeframe for the new partner to be inducted, the official says equity participation in the new arrangement could also change. It was reported that PNB is likely to finalise its new partner by end-June 2002.

The first corporate enterprise Hero Cycles, which was part of this venture, had to part company because the banks did not want to yield the controlling stake to the corporate. In its second bid, DCM Shriram's participation was challenged by the RBI as the corporate was a customer of PNB.

Vijaya Bank was likely to pick up 12.5 per cent in the venture, while Zurich and PNB were likely to pick up 26 per cent each.