Zurich Insurance to buy 70% stake in Kotak General for Rs 5,560 cr in single tranche

The proposed 70% acquisition would be subject to fulfilment of customary conditions precedent, including the receipt of regulatory approvals from the Reserve Bank of India (RBI) and the Insurance Regulatory and Development Authority of India (IRDAI), Kotak Mahindra Bank said

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26 Aug, 2025 12:21

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Private sector lender Kotak Mahindra Bank on February 23 said that Zurich Insurance Company Ltd will acquire a 70 percent stake in Kotak General for Rs 5,560 crore in a single tranche.

In November 2023, Zurich Insurance announced that it would first acquire a 51 percent stake in Kotak Mahindra General Insurance Company through a combination of fresh growth capital and share purchase, and an additional 19 percent stake will be picked up later on.

"The parties to the aforesaid transaction, viz., the Bank, Zurich and Kotak General have mutually agreed that Zurich will acquire 70% stake in Kotak General by way of a combination of primary and secondary acquisitions in a single tranche, for a total consideration of approximately Rs 5,560 crore, instead of the proposal announced in our earlier disclosure (“Proposed 70% Acquisition”)," Kotak Mahindra Bank said in a filing to the exchanges.

The proposed 70 percent acquisition would be subject to fulfilment of customary conditions precedent, including the receipt of regulatory approvals from the Reserve Bank of India (RBI) and the Insurance Regulatory and Development Authority of India (IRDAI), Kotak Mahindra Bank said.

On February 6, the Competition Commission of India (CCI) said that it had approved the acquisition of a 70 percent stake in Kotak Mahindra General Insurance Company by Zurich Insurance Company. Kotak Mahindra General Insurance Company is a 100 percent subsidiary of Kotak Mahindra Bank.

In Q3FY24, Kotak Mahindra Bank reported a 7.6 percent rise in net profit to Rs 3,005 crore for the quarter ended December 2023. Its net interest income (NII) for the reporting period jumped to Rs 6,554 crore against Rs 5,653 crore a year back, while the net interest margin (NIM) for Q3FY24 stood at 5.22 percent, down from 5.47 percent. While the company's gross non-performing assets (NPAs) stood at 1.73 percent against 1.91 percent, its net NPA was at 0.34 percent against 0.48 percent.

Shares of Kotak Mahindra Bank ended at Rs 1,724.80, down by Rs 1.70, or 0.098 percent, on the BSE.