Vijaya Bank, Punjab National Bank and Principal Financial Group, Mauritius, have restructured their JV Arrangements.

As per the release, a Memorandum of Understanding (MoU) was signed to this effect on June 23.

Under the MoU, PNB would get hold of complete equity stake of Principal and Berger Paints of 26% and 25% respectively in the Insurance Brokering Company and Principal's and UK Paints stake of 26% and 32% in Principal PNB Life Insurance Company.

The remaining two partners in both the companies would set up separate JV companies for insurance biz, general and life insurance.

The two public sector partner banking institutions would carry on backing principal PNB Asset Management Company Ltd (AMC) for a period of three years.

Vijaya bank declared that it would raise its equity stake to 26% in the restructured joint venture companies.

Vijaya Bank and PNB have divested their entire 5% and 30% equity stake in the distribution company-- PNB Principal Financial Planners Pvt Ltd and exited from the distribution company. (With Inputs from Agencies)