Private sector lender IndusInd is considering the possibility of cross-selling insurance products from Reliance Capital, according to Sumant Kathpalia, Managing Director and Chief Executive Officer. This development is significant as the bank’s promoter, IndusInd International Holdings Ltd, has successfully bid for the acquisition of debt-ridden Reliance Capital.
“As and when we believe that this makes sense for the bank and Reliance Capital has the right products and segment to penetrate the client wallet, we will go into the action,” Kathpalia said at the post-results press conference. It means that the bank would explore this avenue taking into account the products and segments of Reliance Capital that could effectively tap into the client’s financial needs. The bank, at present, already collaborates with two or three partners in both life and non-life insurance sectors and has an established partnership business in mutual funds.
“It is not necessary that the bank will only distribute because the promoter company owes it. We believe in an open architecture as far as distribution is concerned. We have 2-3 partners in the life and non-life partners insurance sector and we have an open architecture in the mutual fund business,” Kathpalia said. Kathpalia emphasized that the bank’s decision to potentially sell Reliance Capital’s insurance products wouldn’t be solely influenced by the promoter company’s ownership. Instead, the bank follows an open architecture approach in distribution, considering partnerships based on merit and strategic alignment.
IndusInd Bank is known for its strategic collaborations and partnerships to expand its product and service portfolio. The consideration of cross-selling insurance products from Reliance Capital, if implemented, would be in line with the bank’s approach to creating a comprehensive suite of financial products for its customers. However, it’s worth noting that such decisions are subject to regulatory approvals and careful assessment of the market landscape
