IndusInd Bank may cross-sell RCap insurance products, says MD and CEO

IndusInd Bank’s promoter, IIHL, has bought debt-ridden Reliance Capital.

Private sector lender IndusInd may look at cross-selling insurance products of Reliance Capital, said Sumant Kathpalia, Managing Director and Chief Executive Officer (MD and CEO). This is important as the promoter of the bank, IndusInd International Holdings Ltd, has successfully bid for acquiring the debt-ridden Reliance Capital.

“As and when we believe that this makes sense for the bank and Reliance Capital has the right products and segment to penetrate the client wallet, we will go into the action,” Kathpalia said at the post-results press conference.

Currently, the bank has two or three partners in the life and non-life insurance space and has a partnership business in the mutual funds. Here, Kathpalia highlighted that the bank will not solely look at selling RCap insurance products after the acquisition by the promoter.

“It is not necessary that the bank will only distribute because the promoter company owes it. We believe in an open architecture as far as distribution is concerned. We have 2-3 partners in the life and non-life partners insurance sector and we have an open architecture in the mutual fund business,” Kathpalia said.

Also read: IndusInd Bank Q2 results: Net profit jumps 22% to Rs 2,202 crore

IIHL-RCap acquisition

Reliance Capital in July 2023 said that the Reserve Bank of India (RBI)-appointed administrator has submitted the name of IIHL as a successful bidder to the National Company Law Tribunal (NCLT) for consideration.

The Committee of Creditors (CoC) of RCap had voted in favour of the resolution plan submitted by Hinduja Group company IIHL. IIHL has made the highest cash offer of Rs 9,661 crore in the second round of the auction held on April 26.

RCap was the third major non-banking financial firm to be cherrypicked by the RBI in November 2021 under IBC after Srei Group and Dewan Housing Finance Corp. Ltd.