Punjab National Bank (PNB), the country’s second-largest state-run lender,  said it would buy 30 per cent stake in private life insurance company Metlife India to mark its foray into the life insurance segment. The two would form a joint venture called PNB MetLife India Ltd.

This partnership has the potential to drive the company into the top tier of Indian life insurers, and more than double its market share.

MetLife India, an affiliate of MetLife, US, was incorporated as a joint venture between MetLife International Holdings, The Jammu and Kashmir Bank, M Pallonji, Co Private Limited and other private investors.

William J Toppeta, president International, of MetLife, said, “Given its global significance, India is a strategic focus market for MetLife. We believe that the addition of an outstanding financial institution like PNB as a shareholder and partner will greatly enhance MetLife India’s ability to move into the top tier life companies here.”

The transaction is subject to approvals from of the Insurance Regulatory and Development Authority, the Reserve Bank of India and other regulatory bodies.