Punjab National bank with its huge network constituting of 5, 290 branches along with a customer base of over 60 million credits to be the largest nationalized bank.
While commenting on a recent deal where PNB has agreed to pick up a 30% stake in MetLife India, the Chairman of Punjab national bank, K R Kamath, notified to reveal the commercial terms of the deal after receiving the regulatory approval and said that the agreement includes out-entry as a shareholder and also a deal where the bank will distribute products for the life insurance company.
The deal will make the PNB single largest shareholder in the private insurance company and after finalizing the deal, it would be named as PNB MetLife India. The MetLife India acquires a hold on a paid-up capital of Rs 1,997 crore and it will issue fresh shares to PNB, making its capital to Rs 2,596 crore.
“Given its global significance, India is a strategic focus market for MetLife. We believe that the addition of an outstanding financial institution like PNB as a shareholder and partner will greatly enhance MetLife India's ability to move into the top tier of life companies here. We value PNB and our current shareholders for their integrity, market knowledge, distribution power and financial strength”, added William J Toppeta, President International of MetLife.