Talking to Deccan Herald, Vijaya Bank CMD Albert Tauro said the bank is opting for the referral model, where the bancassurance partners will write the business, and Vijaya Bank will provide the customer database. “We have opted for the referral model where we will just be giving leads to the database of customers of the bank. Since the bank’s capital position is sightly tight and insurance is a capital intensive business, so I am not looking at the option of a joint venture for the time being. It will be a revenue sharing model and there will be no additional cost incurred by the bank,” he said.
The bank plans to initiate the business in the next six to eight weeks.