Kotak Mahindra Sells Majority Stake in General Insurance to Zurich

Kotak Mahindra Bank has obtained RBI approval to sell a 70% stake in its general insurance arm to Zurich Insurance Company. Zurich plans to acquire this stake through capital infusion and share purchase for Rs 5,560 crore. All regulatory approvals for the transaction have been received.

Kotak Mahindra Bank announced on Wednesday that it has received approval from the Reserve Bank of India (RBI) to sell a 70% stake in its general insurance subsidiary to Zurich Insurance Company.

Zurich Insurance Company had initially announced their intention in November of last year, planning to acquire a 51% stake in Kotak Mahindra General through capital infusion and share purchase. They aim to subsequently acquire an additional 19% stake over the next three years for a deal valued at Rs 5,560 crore.

In a regulatory filing, Kotak Mahindra Bank confirmed that all necessary regulatory approvals for the transaction have now been secured. Following the announcement, shares of Kotak Mahindra Bank closed at Rs 1,718.75 apiece on the BSE, marking a 4.89% increase over the previous close.

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