RBI has given approval to the bank to form a subsidiary to enter the general insurance business.
Kotak Mahindra Bank is planning to foray into general insurance business. The company has received an approval from RBI to form a subsidiary to enter the general insurance business on Tuesday, says a press release issued by the company.
Earlier, Kotak Mahindra Bank had received an in-principal approval from IRDA to incorporate a general insurance company. The company would require to apply for permanent license with IRDA to float its general insurance business.
In the press release, Gaurang Shah, President – Asset Management , Insurance and International Business, Kotak Mahindra Bank, “The General Insurance business in India is currently a Rs.77,000 crore premium per annum industry and is growing at a healthy rate of 17%. It provides a cover of close to Rs 1,000 lakh crore. With the addition of General Insurance business, Kotak Mahindra Group with existing presence across banking, wealth management, life insurance, broking, mutual funds and private equity will be able to offer the complete range of financial products and services to our retail and wholesale customers. Our knowledge and experience across the BFSI spectrum generates excellent cross synergies that we hope to leverage in our General Insurance business to the benefit of our customers and stakeholders alike.”
The company has named Mahesh Balasubramanian as the chief executive officer of the new venture. Mahesh is currently holding the position of Executive Vice President and Co-Head, Branch, Bank at Kotak Mahindra Bank.