Bandhan Bank faces ₹200 crore insurance hit

What happened: Bandhan Bank faces a ₹200 crore hit from a proposed IRDA change to third-party product distribution that would lower commission income for banks. Managing director Partha Pratim Sengupta said the proposal will affect the entire banking industry. Key numbers: ₹200 crore insurance hit; IRDA proposed change to Why it matters: The bank is changing its business model and will shift focus to mutual fund distribution. Sengupta said the bank has several levers to mitigate the loss and is introducing new areas in its product suite. Banks have reached out to IRDA on the proposal.

Bandhan Bank faces a ₹200 crore hit from a proposed IRDA change to third-party product distribution that would lower commission income for banks. Managing director Partha Pratim Sengupta said the proposal will affect the entire banking industry.

The bank is changing its business model and will shift focus to mutual fund distribution. Sengupta said the bank has several levers to mitigate the loss and is introducing new areas in its product suite. Banks have reached out to IRDA on the proposal.