Kotak Mahindra Bank announced on February 23 that Zurich Insurance Company Ltd will acquire a 70 percent stake in Kotak General for Rs 5,560 crore in a single tranche.
Initially, in November 2023, Zurich Insurance had disclosed its plan to acquire a 51 percent stake in Kotak Mahindra General Insurance Company, followed by an additional 19 percent stake later on.
However, Kotak Mahindra Bank stated in a filing to the exchanges that the parties involved have mutually agreed to modify the transaction. Under the new arrangement, Zurich will acquire a 70 percent stake in Kotak General through a combination of primary and secondary acquisitions, instead of the previously proposed 70 percent acquisition.
This transaction is contingent upon 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) approved the acquisition on February 6.
Kotak Mahindra Bank reported a 7.6 percent increase in net profit to Rs 3,005 crore for Q3FY24, with net interest income (NII) rising to Rs 6,554 crore. However, the net interest margin (NIM) for the quarter decreased to 5.22 percent. The bank’s gross non-performing assets (NPAs) stood at 1.73 percent, while net NPAs were at 0.34 percent.
On the Bombay Stock Exchange (BSE), shares of Kotak Mahindra Bank closed at Rs 1,724.80, marking a decrease of Rs 1.70 or 0.098 percent.
