Nippon Life Insurance’s India unit is reportedly in discussions to acquire a minority stake in India-based IndusInd Bank, leveraging the bank’s network to enhance its insurance product distribution.
Reliance Nippon Life Insurance could aim for up to a 9.9% share in the Mumbai-based bank, potentially starting with a 4.9% stake and increasing it over time, reported Bloomberg, citing sources close to the matter.
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The talks are at a preliminary stage, and there is no certainty they will result in a deal said the sources.
Nippon Life has refrained from commenting on the matter, and IndusInd Bank has not responded to inquiries regarding the potential transaction, reported the media outlet.
IndusInd Bank, with a market capitalisation of approximately Rs730bn ($8.4bn), serves about 42 million customers across India.
It has over 3,063 branches and 2,993 ATMs, reaching 160,000 villages.
Additionally, the bank has international representative offices in London, Dubai, and Abu Dhabi.
IndusInd Bank’s portfolio caters to individuals and corporates, offering products such as microfinance, personal and commercial vehicle loans, credit cards, and SME loans.
In May 2024, Economic Times reported Hinduja Group’s plans to raise its stake in IndusInd Bank from 16% to 26% in multiple tranches.
At that time, Hinduja Group director Ashok Hinduja said Reserve Bank of India had given approval letter to raise the stake and the regulatory process would take time.
Reliance Nippon Life Insurance has a distribution network, with 713 offices and over 61,000 advisers as of 31 March 2024, according to its website.
