Andhra Bank, Bank of Baroda form life insurance company

NEW DELHI: There will be one more life insurance company in the country as the government-owned Bank of Baroda (BoB), Andhra Bank and their British partner Legal & General on Friday announced the formation of their life insurance venture, IndiaFirst.
At the same time, the government plans to infuse Rs 9,000 crore into select state-run banks by May. In the Budget, the government has earmarked Rs 16,500 crore for recapitalisation of state-run banks, to enable them maintain eight per cent tier-I capital by March 31, 2011.
Government is yet to decide, which banks it would infuse funds into and the amount for each lender. It is expected that UCO Bank, Bank of Maharashtra, Indian Overseas Bank, Syndicate Bank, Dena Bank, among others, will be beneficiaries of capital infusion.