Old private sector lender Tamilnad Mercantile Bank has entered into bancassurance partnerships with Cholamandalam MS General Insurance Company Ltd, part of the Chennai-based Murugappa Group, and Max Life Insurance Company to provide general insurance products and life insurance schemes respectively to TMB’s customers.
More About This Transition:
Under the tie-up, Tuticorin-based TMB’s 500-plus branches will start retailing the insurance products of both companies. The bank has inked agreement with Cholamandalam MS General Insurance Company for the purpose of marketing, distribution & selling the general insurance products
What The Bank Said:
“On getting listed in the Stock Exchanges, Tamilnad Mercantile Bank, is back to enrich our vision in expanding the network PAN India, with added features in the products and services,” said S.Krishnan, MD & CEO, Tamilnad Mercantile Bank Limited (TMB). This tie-up launching function, we believe, is a watershed moment for the Bank.
About Bancassurance :
It is the selling of insurance products through banking channels. In Bancassurance a bank enters into an agreement with an Insurance company. The Bank makes its customer database available to the Insurance companies. If the bank customer buys the insurance products then the bank will receive a commission from the Insurance companies.
Here both the bank and the Insurance companies benefit. The Insurance companies get new customers and banks earn extra income.
About Tamilnad Mercantile Bank (TMB):
It was set up at the Nadar Bank limited in 1921 by Nadar business community of Tamilnadu. It was renamed as Tamilnad Mercantile Bank in 1962. It is a Private sector bank in India. It offers a wide range of banking and financial services primarily to Micro, Small and Medium Enterprises (MSME), agricultural and retail customers.
Managing Director (MD) and Chief Executive Officer (CEO): S.Krishnan
Headquarters: Tuticorin, Tamil Nadu.