Jammu and Kashmir bank, which has entered into a joint venture with Metlife India, plans to exit insurance business by intending to sell the entire 5% of its remaining share holding or a part thereof. The bank acts as a corporate agent of Metlife India and markets its products through its strong branch network. The bank diversified its operation when it entered into both life and non life insurance business.
The bank currently has 750 branches across India and plans to add more 250 in coming time. However, the bank has no plans to expand its operations overseas except for Mirpur and Muzzafarabad, for which permission was denied by Reserve Bank of India.
Mr. Mushtaq Ahmed, Chief Executive Officer and Chairman – Jammu and Kashmir Bank said that the bank has already reduced its share holdings from 11% to 5% in Metlife and has plan to sell the remaining 5% or 102.20 million shares at any point of time, if they see good profit booking.
6% or 118.10 million shares (out of the total 220.30 million shares) of Metlife India were sold by J&K bank to Punjab National Bank for a total amount of Rs. 190 crores. Mr. Ahmed also clarified that the amount raised by selling of these shares will be put into bank’s reserves.
