(Bloomberg) -- Kotak Mahindra Bank Ltd., backed by billionaire Uday Kotak, is considering selling a minority stake in its general insurance unit, according to people familiar with the matter.
The lender is working with Morgan Stanley on the potential sale of a stake in Kotak General Insurance which could raise as much as a few hundred million dollars, the people said. The process could draw potential strategic partners as well as financial investors, the people said, asking not to be identified as the information is private.
Deliberations are at an early stage, details of a deal such as size and structure could change and the lender could decide not to go ahead with the stake sale, the people said. Representatives for Kotak Mahindra Bank and Morgan Stanley declined to comment.
A deal would see the lender join a number of other Asian banks pursuing tie-ups for their insurance arms. These include Bank for Investment and Development of Vietnam JSC which is considering reviving the sale of its stake in a joint venture with Metlife Inc., and Indonesia's PT Astra International is weighing options including a partial sale of its life insurance unit, Bloomberg News has reported. Dah Sing Financial Holdings Ltd. and Sun Life Financial Inc. announced a 15-year bancassurance partnership in Hong Kong last month.
Kotak General Insurance was established in 2015 and has 25 branches across India with more than 1,300 employees at the end of 2022, according to its website. The wholly-owned subsidiary of Kotak Mahindra Bank offers an array of insurance product types including auto, health and commercial, the website shows.
(Updates with adviser in second paragraph, comment in third paragraph.)
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