Chennai: Indian Bank is looking to expand its presence in the financial services industry with plans to enter the life insurance and asset management sectors. The public sector lender is expected to seek approval from its board before moving ahead with the proposed businesses.
Indian Bank Managing Director and CEO Binod Kumar said the plans are progressing and the bank is currently working on the approval process. Once the board gives the go-ahead, the lender will begin the necessary regulatory and administrative steps.
Life Insurance Entry May Take Time
The bank is considering setting up the proposed businesses through subsidiaries or joint ventures. One of the key steps will be finding an appropriate partner for the new ventures.
According to Kumar, choosing the right partner will be important for building the business and creating long-term value. The complete process could take around a year, depending on partner selection and subsequent regulatory requirements.
Indian Bank Already Has Insurance Presence
Indian Bank already has exposure to the insurance industry through Universal Sompo General Insurance Company. The bank currently holds a 28.52% stake in the general insurance company.
The stake came to Indian Bank following the merger of the erstwhile Allahabad Bank with Indian Bank in 2020. Universal Sompo operates as a joint venture involving Indian Bank, Indian Overseas Bank, Karnataka Bank, Dabur Investment Corporation and Japan-based Sompo Japan Insurance.
Bank Also Expanding Overseas Operations
The proposed entry into life insurance and asset management comes as Indian Bank continues to explore new areas of growth.
The bank has also received board approval to open a representative office in Dubai and is working on obtaining the required regulatory clearances. It is also examining opportunities to establish a presence in Malaysia and Indonesia.
At present, Indian Bank has international operations including a full-service branch in Singapore, branches in Colombo and Jaffna, Sri Lanka, and an IFSC Banking Unit at GIFT City, Gandhinagar.
What Indian Bank’s Life Insurance Plan Means
If the proposal moves forward, Indian Bank’s entry into life insurance would add another financial-services business to its existing banking and general insurance operations.
However, the proposed life insurance business is still at the planning and approval stage. The bank will need to complete the board approval process along with the applicable regulatory and administrative requirements before the venture can move ahead.