Indian Bank to enter life insurance business, soon to seek board nod

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 and 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 told PTI in an interview.

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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 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 per cent 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 per cent), Indian Overseas Bank (18.06 per cent), Karnataka Bank (6 per cent), Dabur Investment Corp (12.81 per cent), and a leading general insurer from Japan, Sompo Japan Insurance Inc, holding a majority 34.61 per cent stake.

Speaking about increasing the bank's footprint in the global arena, Kumar said Indian Bank plans to open a representative office in Dubai to leverage business opportunities offered by the large Indian diaspora across West Asia.

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Currently, the bank has a full-service international branch in Singapore and branches in Colombo and Jaffna (Sri Lanka).

Besides, it has an IFSC Banking Unit (IBU) functioning as an offshore/foreign branch from GIFT City, Gandhinagar.

"We are getting good business from our GIFT City branch, including participation in various syndicated loans ... my aim now is to open a rep office in Dubai ...We have a good number of non-resident Indians settled in Dubai and about 33 per cent of the working population is Indian," he said.

For the representative office in Dubai, the bank's board has given its approval and the bank is in the process of seeking other regulatory approvals.

Besides, Kumar said the bank is exploring the possibility of having a presence in Malaysia and Indonesia.