India’s central bank, the Reserve Bank of India
(RBI) has granted approval for Kotak Mahindra Bank to enter general insurance
business.
The bank, which acquired ING Vysya Bank last week
and became the fourth largest private bank in India, received approval from the
RBI to form a 100 per cent subsidiary to enter the general insurance industry,
which is currently growing at a Rs 77,000 crore premium per annum.
Bank’s Executive Vice-President Mahesh
Balasubramanium has been named Chief Executive Officer of the new venture,
which has been started with an initial capital of Rs 100 crore.
Initially, the bank will focus on motor and health insurance and aim to grab about 0.5 per cent of the market share in five years. The industry is expected to grow at a CAGR of 15 per cent to grow to Rs 1.80 lakh crore by 2020 (from Rs 77,000 crore). The bank is likely to hire about 250-300 people for the business.
Initially, the bank will focus on motor and health insurance and aim to grab about 0.5 per cent of the market share in five years. The industry is expected to grow at a CAGR of 15 per cent to grow to Rs 1.80 lakh crore by 2020 (from Rs 77,000 crore). The bank is likely to hire about 250-300 people for the business.
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