Private sector lender Kotak Mahindra Bank (KMBL) has announced its plans to foray into the general insurance space with an initial paid up capital of Rs 100 crore.
The bank has received approval on November 25 from the Reserve Bank of India to form a subsidiary to enter the general insurance business. KMBL had earlier received an in-principle approval from the Insurance Regulatory and Development Authority (IRDA) for incorporation of a general insurance company.
Capital requirement
“The capital requirement for the general insurance business is very small and we plan to infuse around Rs 100 crore for our foray into the general insurance business,” KMBL President (Asset Management, Insurance and International Business) Gaurang Shah said.
The capital infusion will be totally done via internal accruals, Shah said, adding that the general insurance business will aim for premiums of around Rs 800-900 crore in the next 5-6 years.
Mahesh Balasubramanian has been named as Chief Executive Officer of the new venture. Balasubramanian is currently executive vice-president and co-head, branch banking, Kotak Mahindra Bank. The new venture will also look at expanding its offering, going forward.
“The general insurance business will be focusing on motor, health, fire, marine and other commercial lines business to start with. We will certainly like to offer travel insurance, going forward,” Shah said.
We plan to hire about 250-300 people for our general insurance business, Shah added.