new delhi american health insurance major cigna corporation has initiated negotiations with a clutch of stateowned banks to form an india joint venture to foray into the countrys fast growing health insurance sector two persons familiar with the development saidthe us company will hold 26 in the proposed jv as per the foreign investment cap permitted in the sector and may invest around rs 100 crore initially cigna is looking to partner a public sector bank to leverage their vast distribution channel the first person said on condition of anonymitya spokeswoman of cigna gloria barone said the company cant comment on speculation in the market place but bill atwell president of cigna international had told et in an interview early this year that cigna is very interested in india and has been seeking a suitable jv partner to form a standalone health insurance companythe second person familiar with the development said cigna is in discussions with bank of india bank of baroda punjab national bank oriental bank of commerce and canara bank however this could not be confirmed independently executives of punjab national bank and oriental bank of commerce said they are not in talks with cigna while bank of baroda spokesperson declined commentindians spend about 35 billion every year on healthcare and there are currently only three independent private health insurance firms apollo dkv star allied health insurance and max bupa besides general insurers who also provide health insurance just about 35 of the countrys 12 billion population have health insurance cover that provides a huge opportunity for firms to enter the largely untapped marketif cignas efforts fructify it will be the fifth standalone health insurance company to operate in the country delhibased financial services firm religare enterprises also plans to roll out its services by the end of the year