Kotak Mahindra Bank on Tuesday announced its entry into the general insurance space, a week after buying out ING Vysya in one of the biggest deals in the country’s banking space.
The bank has received the RBI’s approval to form a general insurance subsidiary and already has an in-principle nod from Insurance Regulatory and Development Authority (Irda) to incorporate it, the private sector lender said in a statement.
Garaung Shah, president of asset management, Insurance and International Business, Kotak Mahindra Bank, said: “We are a significant brand today compared to what we were 10 years ago. So, I think it is the right time for us, in our organic journey, to offer all products in one platform”.
KMB is likely to ask for R1 licence in December and is confident of starting the operation of its general insurance business from the second quarter of FY16.
Initially, the general insurance business will start with a capital of Rs 100 crore. “We will focus on the bankassurance channel to do 50-60% of the business, but will also rely on our agents and the digital platform to get business”, said Shah.
The bank has started hiring for the new venture, having already put in place a CEO in Mahesh Balasubramanian.