Following in the footsteps of big brother Saraswat Bank, Pune based UCB Cosmos Bank has also tied up with LIC Mutual Fund to sell insurance as there seems to be a race among leading UCbs to grow through the route of selling insurance after the govt’s severe restrictions on them compared to commercial cousins have failed to slacken.
Media reports say LIC Mutual Fund has nailed down a deal with Cosmos Co-operative Bank for distribution of mutual fund products through the bank’s 140 branches spread across the country.
Earlier, Future Generali India Life Insurance and Saraswat Bank, signed an agreement under which the latter will sell life insurance and other insurance products of the former in India through its network of over 250 branches across the country as well as through their digital platforms.
In case of Cosmos Bank LIC sources said they are happy partnering with the leading cooperative bank to sell their products. Their comprehensive range of products catering to investment needs of investors and the distribution reach of the bank would combine to generate a great deal of business, they claimed.
It is worth mentioning that Mutual Fund penetration in India is still very low and banks have played an important role in selling these products. This deal would offer options for customers, says an expert.