IndusInd Bank Limited has applied to the Reserve Bank of India for floating an insurance broking subsidiary as an area of diversification, a top bank official said.
"Instead of entering the insurance business directly, the bank plans to start insurance broking as the first step," IndusInd Bank managing director and CEO Bhaskar Ghose said.
He said that once the approval was given, IndusInd would be able to sell products of all life insurance companies, including LIC, from its branches across the country.
Ghose said that IndusInd has entered into a strategic alliance with Union National Bank of Abu Dhabi.
The tie-up, he said, would encompass a wide range of banking services, which would fetch both fee and fund-based income of the bank.
He said that IndusInd would not open branches abroad as all Indian banks, both private and public, have been making losses in overseas operations.
Ghose said that IndusInd would not follow that business model, but would enter into tie-ups with banks in countries where there was considerable concentration of stakeholders of the bank.
The bank has two representative offices at London and Dubai.Do you want to discuss stock tips? Do you know a hot one? Join the Stock Market Investments Discussion Group