(Bloomberg) — Kotak Mahindra Bank Ltd., backed by billionaire Uday Kotak, is considering selling a minority stake in its general insurance unit, according to people familiar with the matter.
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The lender is working with Morgan Stanley on a possible stake sale in Kotak General Insurance, which could raise up to a few hundred million dollars, the people said. The process could attract potential strategic partners as well as financial investors, said the people, who asked not to be identified because the information is private.
The people said the discussions are at an initial stage, details of the deal such as size and structure could change and the lender could decide not to go ahead with the stake sale. Representatives of Kotak Mahindra Bank and Morgan Stanley declined to comment.
A deal would see the lender join several other Asian banks which are forging tie-ups for their insurance branches. These include Bank for Investment and Development of Vietnam JSC which is considering reviving the sale of its stake in a joint venture with MetLife Inc, and Indonesia’s PT Astra International weighing options including a partial sale of its life insurance unit. is doing, Bloomberg News has reported. Dah Sing Financial Holdings Limited and Sun Life Financial Inc. announced a 15-year bancassurance partnership in Hong Kong last month.
Kotak General Insurance was established in 2015 and according to its website, it has 25 branches across India with over 1,300 employees by the end of 2022. The wholly owned subsidiary of Kotak Mahindra Bank offers a range of insurance product types including auto, health and commercial, the website shows.
(Update with advisor in second paragraph, comment in third paragraph.)
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