Punjab National Bank aquiring 33% stake in MetLife India

Punjab National Bank is near shopping for 33% stake in MetLife India which will boost fee income for the staterun bank and supply the US insurer with the second-best monetary distribution platform within the country. "PNB is in talks to choose up to thirty third stake in MetLife," said an individual conversant in the negotiations. "The deal is also finalised within the next few days," he added. Four additional folks conversant in the negotiations said the discussions on valuations are continuing. There is no certainty that the transaction can occur. The discussions between PNB and MetLife conjointly involve Jammu & Kashmir Bank , that owns one hundred and thirtieth of the insurer. The state-run lender might obtain out alternative shareholders like J&K Bank and Shapoorji Pallonji & Co. there is no call on that nonetheless, the folks said. MetLife Insurance managing director Rajesh Relan said the corporate wouldn't touch upon speculation. "We are one among the 3 short-listed firms by PNB as per their method and also the discussions with the management are nonetheless to start," said Mr Relan. PNB failed to commit on the transaction either. "It would be premature to mention we've zeroed in on MetLife. The bank can take a final call primarily based on the monetary valuation report," said PNB government director MV Tanksale. A senior bank government within the grasp of the event said the deal is anticipated to be valued within the vary of Rs 12-13 per share. The bank in April had short-listed 3 insurance firms together with MetLife, Aviva and Bharti Axa Life Insurance for the industrial bid. A banker concerned within the deal said: "PNB wished to take a position during a insurance company which might supply it higher stake at a gorgeous worth." MetLife may be a JV between Jammu & Kashmir Bank, Shapoorji Pallonji & Co, US-based MetLife International and personal shareholders. PNB is probably going to shop for out the stakes of J&K Bank and alternative non-public investors. J&K Bank's stake has return right down to one hundred and thirtieth from twenty fifth when the JV was started in 2001. In 2010, MetLife had lost its bancassurance partner Axis Bank to Max big apple Life. This resulted during a drop in their business.