The Union government's decision to allow more corporate houses to open banks in India has also brought many bancassurance opportunities, said PNB MetLife India Managing Director Rajesh Relan. With this the bancassurance structure in the country is going to be transformed in a big way, he added.
Opening of new bansk will help in increasing insurance penetration. There could be multiple consequences of this. Since a part of the business will shift from existing banks to new banks, the existing banks will need to look at boosting their non-fund based fee income to make up for the loss in interest income.
This would lead to retail wealth management model in public sector banks. Since banks have to increase fee income, this would come from wealth management activities, he added.