State-run UCO Bank is putting its proposed non-life insurance business on hold, as it believes time is not appropriate for such a venture. "We are putting the non-life insurance business on hold," bank's chairman and managing director SK Goel said on Monday. Earlier, the bank had decided to form a joint venture company with US-based Liberty for entering into the non-life insurance business this fiscal. It had also proposed to set up a subsidiary with other partners, including another nationalised bank.
Talking to reporters on the sidelines of the 5 th annual general meeting of the bank, Goel said, "We have seen others, who have floated non-life business, are not doing well. We are not going for that now. We will take a relook into the matter by September this year," Goel said. Asked about the possibility of having new partners in the venture, he said:
"We will be continuing with earlier partners. No memorandum of understanding was signed with Liberty. But, we have other partners as well." The bank is planning to come up with a Rs 300-400-crore follow-on public offer in the third quarter of this fiscal. "We are likely to receive Cabinet approval within 10-15 days," a top official of the bank said.
Source: The Financial Express
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