Bandhan Group is planning to enter the insurance business, people with knowledge of the matter told CNBC-TV18. The group plans to enter the general insurance business first, followed by life insurance, sources said.
Officials from the Bandhan Group recently met the insurance regulator, expressing their intentions for the same. The group is looking at both organic and inorganic routes for this planned foray and is already in talks with many general insurance companies for a potential acquisition opportunity, according to the source.
Bandhan Group officials recently met the insurance regulator, expressing their intentions. The group is looking at both organic and inorganic routes for this planned foray and is already in talks with several general insurance companies for a possible acquisition opportunity, sources said.
Bandhan Financial Holdings, which is the holding company of Bandhan Bank, is currently in the banking and mutual fund business.
IRDAI chairman Debashish Panda has repeatedly expressed his intention to bring more companies into the insurance sector. This will be facilitated by various reforms of IRDAI, which are in the process of being regulated.
An entity from the Bandhan Group may just turn out to be one such company.
A bonded group entity can be such a company.
Both IRDAI and the government have released a consultation paper proposing to reduce the initial capital commitment to enter the insurance market. If the amendment goes through, it will reduce the capital commitment required for bond group insurance.
CNBC-TV18 has written to Bandhan Group and is awaiting a comment from them.
Shares of Bandhan Bank were trading at a 52-week low of Rs 207.55, down 4.7 percent.
