Chennai: Public sector lender Indian Bank is contemplating entering the life insurance and asset management company (AMC) businesses. The Chennai-headquartered bank is planning to launch two joint venture (JV) subsidiaries for the respective verticals to tap opportunities in the life insurance and wealth management segments.“It is our long-term plan,” Indian Bank MD & CEO Binod Kumar told TOI in an interview on Thursday. “Currently, life insurance penetration is only 2.7%, which offers tremendous scope for growth. The AMC business provides several opportunities in wealth management, family offices and mutual funds,” he said. The bank is eyeing a 20%-30% stake in the new JVs.The state-owned bank already holds a stake in Universal Sompo General Insurance, a JV of Indian Bank, Indian Overseas Bank (IOB), Karnataka Bank, Dabur Investment Corporation and Japan’s Sompo Japan Insurance. Indian Bank is the second-largest shareholder in the general insurer with a 28.5% stake, next only to Sompo Japan Insurance, which holds 34.6%.Meanwhile, Indian Bank is targeting total business of Rs 20 lakh crore over the next two years, a 30% increase from the current level of Rs 15.3 lakh crore as of June 30, 2026. Kumar said total business would reach Rs 17 lakh crore by the end of the current fiscal (FY27). “We will add another Rs 2 lakh crore next year. We expect to reach Rs 19.2 lakh crore in FY28 and Rs 20 lakh crore by September 2028,” he said.Asked about India’s recent free trade agreements (FTAs), including the UK trade deal that officially came into effect on Wednesday, Kumar said the agreements would help boost exports, particularly benefiting MSMEs. “With exports on the rise, demand for credit from MSMEs, which are our customers, will also increase,” he added.
