Kolkata, Oct 29 (IANS): Life Insurance Corporation of India (LIC) Saturday signed an agreement with Paschim Banga Gramin Bank, a regional rural bank (RRB) in West Bengal, for a corporate agency to make its insurance products available in remote areas of the state.

Paschim Banga Gramin Bank has 216 branches in Howrah, Hooghly, Burdwan and Birbhum districts of the state.

The offices of the bank will be supported by 35 branches and 19 satellite offices of LIC.

"This bank has 216 branches in four districts. LIC or any commercial bank cannot have this kind of reach in rural areas. Through this tie-up, we can reach out to those areas where we cannot reach alone," LIC zonal manager (eastern zone) S.K. Roy told reporters after signing the memorandum of understanding (MoU).

"Through this MoU, we will get a reach... it is also good for the customers. The rural economy is now a thriving economy. The bank has a total business of Rs.3,500 crore in four districts," Roy said.

On the company's business target in the eastern region, he said: "We want to do better than what we did last year. We have an income target of Rs.6,700 crore from new business this fiscal."

Paschim Banga Gramin Bank chairman Sabyasachi Das, who was present on the occasion, said the tie-up will help the bank to increase its fee-based income.

"The tie-up will increase our fee-based income. Our customer base will also increase. We expect that we will register a profit of minimum Rs.3 crore to Rs.5 crore this fiscal," Das said.

He said the bank was planning to open five more branches this year and another 10 next year in the four districts.