Bandhan Group Plans Foray Into Insurance Industry: Exclusive
CNBC-TV18 has written to the Bandhan group and is awaiting comment from them.
Bandhan Group plans to enter insurance business, people with knowledge of the matter say CNBC-TV18. The group plans to enter the general insurance business first, followed by life insurance, sources said.
Bandhan Group officials recently met with the insurance regulator, expressing their intentions in this regard. The group is exploring both organic and inorganic avenues for this planned foray and is already in talks with numerous general insurance companies for a possible acquisition opportunity, according to the source.
Bandhan Financial Holdings, which is the holding company of Bandhan Bank, is currently engaged in banking and mutual fund business.
IRDAI President Debasish Panda has repeatedly expressed his intention to bring more companies into the insurance industry. This will be facilitated by various reforms of the IRDAI, which are on the way to becoming regulations.
A Bandhan Group entity may well turn out to be one such company.
Both IRDAI and the government have published a consultation document which proposes to reduce the initial capital commitment to enter the insurance market. If passed, the amendment will reduce Bandhan Group’s required capital commitment for its foray into insurance.
CNBC-TV18 has written to the Bandhan group and awaits a comment from them.
Shares of Bandhan Bank are trading down 4.7% to a 52-week low of Rs 207.55.
(Edited by : Hormaz Fatakia)
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