IndusInd Bank to set up insurance broking arm

PUNE: Indusind Bank plans to set up an insurance broking subsidiary which will help the bank create a separate subsidiary for wealth management services.

Both subsidiaries will be set up in this fiscal, even as the bank expands its partnerships with mid-sized overseas banks, in locations with sizeable chunks of high net worth NRIs, especially Sindhis.

According to IndusInd Bank MD and CEO Bhaskar Ghose, the bank is scouting for an overseas JV partner for its life insurance business.

The bank will raise funds through filling the gap between its authorised capital of Rs 400 crore and its paid-up capital of Rs 320 crore. This gap will be filled largely through the premium it expects to get on a share of face value of Rs 10 and will be done in the next 10-11 months, before the next AGM.

“We are targeting the bank’s natural markets, the overseas Sindhi community, to whom we can offer wealth management services. For this, we need to set up a separate subsidiary, which will take time.

We are looking at an insurance broking subsidiary to offer wealth management services to our target market, high net worth individuals from the Sindhi diaspora,” Mr Ghose told reporters after the bank’s 13th AGM on Tuesday.