The Bandhan Group is planning to enter the insurance business, people with knowledge of the matter told CNBC-TV18. The group is first planning an entry into the general insurance business, 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 Financial Holdings, which is the holding company of Bandhan Bank is currently in the banking and mutual fund business.
IRDAI Chairman Debasish Panda has time and again expressed intent of bringing more companies into the insurance sector. This will be facilitated by various reforms of the IRDAI, which are in the process of becoming regulations.
An entity from the Bandhan Group may just turn out to be one such company.
The IRDAI and the government have both put out a consultation paper which proposes to reduce the initial capital commitment to enter the insurance market. In case the amendment goes through, it will reduce the capital commitment required from the Bandhan Group for its insurance foray.
CNBC-TV18 has written to the Bandhan Group and is awaiting a comment from their end.
Shares of Bandhan Bank are trading 4.7 percent lower at a 52-week low of Rs 207.55.