Private-sector lender Kotak Mahindra Bank today announced its entry into the highly fragmented general insurance space, a week after buying out ING Vysya in one of the biggest deals in the country's banking space.
The bank has received the RBI's approval to form a general insurance subsidiary and already has an in-principle nod from Insurance Regulatory and Development Authority (IRDA) to incorporate the same, the city-based lender said in a statement here.
"With the addition of general insurance business, the Kotak Mahindra group with existing presence across banking, wealth management, life insurance, broking, mutual funds and private equity will be able to offer the complete range of financial products and services to our retail and wholesale customers," Kotak asset management, insurance and international business president Gaurang Shah said.
The bank has named Mahesh Balasubramanian as chief executive officer for its general insurance arm. He is currently the executive vice president and co-head, branch banking at the bank.
"With Kotak Mahindra group's increasing distribution network, growing brand equity and consumer franchise, we believe we will be able to leverage synergies and add significant value to the general insurance business," Balasubramanian said.