Kotak Mahindra Bank announced on February 23 that Zurich Insurance Company Ltd will purchase a 70 percent stake in Kotak General for Rs 5,560 crore in a single tranche.
Initially, in November 2023, Zurich Insurance had proposed to acquire a 51 percent stake in Kotak Mahindra General Insurance Company, followed by an additional 19 percent stake later on.
However, the parties have now mutually agreed to amend the transaction, with Zurich acquiring a 70 percent stake in Kotak General through a combination of primary and secondary acquisitions for approximately Rs 5,560 crore.
This proposed acquisition is subject to customary conditions precedent, including regulatory approvals from the Reserve Bank of India (RBI) and the Insurance Regulatory and Development Authority of India (IRDAI). The Competition Commission of India (CCI) has already approved the acquisition of a 70 percent stake in Kotak Mahindra General Insurance Company by Zurich Insurance Company.
In Q3FY24, Kotak Mahindra Bank reported a 7.6 percent increase in net profit to Rs 3,005 crore. Its net interest income (NII) rose to Rs 6,554 crore, and the net interest margin (NIM) stood at 5.22 percent. The bank’s gross non-performing assets (NPAs) were at 1.73 percent, with net NPAs at 0.34 percent.
Kotak Mahindra Bank’s shares closed at Rs 1,724.80 on the BSE, down by Rs 1.70.
