Indian Bank plans life insurance and AMC entry to hit Rs 20 lakh crore business

The Chennai-headquartered public sector lender Indian Bank announced on Thursday its plans to enter the life insurance and asset management company (AMC) businesses through two new joint venture subsidiaries. Managing Director and CEO Binod Kumar revealed the expansion strategy, which aims to leverage untapped opportunities in the wealth management and insurance sectors while driving the bank's total business to Rs 20 lakh crore over the next two years.

Speaking on the expansion, Kumar highlighted that the current life insurance penetration rate in India is only 2.7 per cent, which offers tremendous scope for growth. He added that the AMC business would provide several opportunities in wealth management, family offices, and mutual funds. The state-owned bank is looking to acquire a 20% to 30% stake in the new joint ventures.

Indian Bank already has a presence in the insurance sector through its holdings in Universal Sompo General Insurance. This entity is a joint venture comprising Indian Bank, Indian Overseas Bank (IOB), Karnataka Bank, Dabur Investment Corporation, and Japan's Sompo Japan Insurance. Currently, Indian Bank is the second-largest shareholder in this general insurer, holding a 28.5% stake, while Sompo Japan Insurance holds the leading share of 34.6%.

Alongside its entry into these new financial verticals, the bank has outlined a clear trajectory for its business growth. Indian Bank is targeting a total business of Rs 20 lakh crore over the next two years. This represents a 30% increase from its business level of Rs 15.3 lakh crore as of June 30, 2026.

To achieve this milestone, Kumar stated that the bank's total business is projected to reach Rs 17 lakh crore by the end of the current fiscal year 2027 (FY27). The bank plans to add another Rs 2 lakh crore in the subsequent year to meet its long-term growth objective.