Monday, January 17, 2011

Principal, PNB & Vijaya Bank restructures Joint Ventures

Principal Financial Group (Mauritius) Ltd. (Principal) today announced the restructuring of its joint ventures with Punjab National Bank and Vijaya Bank, in India. 

Principal has sold its entire stake (26%) in both the Pnb Principal Insurance Broking Pvt. Ltd. and Principal Pnb Life Insurance Company Ltd. to PNB. On the other hand, Principal has acquired the entire shareholding of PNB (30%) and Vijaya bank (5%) in the Pnb Principal Financial Planners Pvt. Ltd. 

On the eve of signing the agreements, Mr Rajan Ghotgalkar, Country Head & MD, Principal India statedthat, "The transactions for transfer of shares and restructure of the Joint Ventures, initiated in June last year, stood concluded on January 12, 2011."

Also as per the restructure terms, parties (Principal, Punjab National Bank and Vijaya Bank) continue to remain the shareholders, (with no change in the shareholding pattern) - in Principal Pnb Asset Management Company Pvt. Ltd. and Principal Trustee Company. 

Further both the Partner Banks, PNB and VB, stay committed to distribute the products of AMC.