Indian Bank awaits board approval for life insurance, mutual fund foray

CHENNAI: Indian Bank's plans to enter the life insurance and asset management segments are progressing as planned, and it would soon approach the board for approval, the bank's MD-CEO Binod Kumar said.

The lender is currently in the process of seeking approval from its board for the proposed subsidiaries or joint ventures, following which other necessary processes will be initiated, Kumar said.

Regarding entry into the life insurance and asset management space, he said, "It is very much on track. We are in the process of seeking board approval and thereafter initiate other relevant regulatory and administrative processes."

Kumar said identifying the right partner would be a crucial part of the exercise, as a strong partner can help accelerate wealth creation.

It is already present in the general insurance space with a 28.52% stake in Universal Sompo General Insurance Company

"It will take time, say one year or so. Identifying a good partner is the most essential part of that. If you have a good partner, wealth creation is faster," he said.

Kumar also underlined the strategic importance of subsidiaries or joint ventures for an organisation, saying they can serve as a strong route for wealth creation as well as branding.

Indian Bank is already present in the general insurance space with a 28.52% stake in Universal Sompo General Insurance Company. The stake came to Indian Bank with the amalgamation of the erstwhile Allahabad Bank in 2020.

Established in 2007, Universal Sompo General Insurance Company Limited is a joint venture of Indian Bank (28.52%), Indian Overseas Bank (18.06%), Karnataka Bank (6%), Dabur Investment Corp (12.81%), and a leading general insurer from Japan, Sompo Japan Insurance Inc, holding a majority 34.61% stake.