Indian banks fall as proposed insurance commission caps raise fee-income concerns
BUZZ-Indian banks fall as proposed insurance commission caps raise fee-income concerns ** Insurance regulator's proposal to tighten caps on insurance commissions from the financial year 2028 poses a slight earnings risk for banks, says Jefferies
** It "will be a tad negative for banks' bancassurance fees, especially credit-protect premiums, as it's mostly single premium with high commissions," says Jefferies
** Says IndusInd Bank INBK.NS and IDFC First Bank IDFB.NS have higher exposure; ICICI Bank ICBK.NS and state-owned lenders have lower risk, citing FY2026 banca commission/FY2027 profit
** Axis Bank AXBK.NS and HDFC Bank HDBK.NS will be affected more than State Bank of India SBI.NS, ICICI Bank ICBK.NS and Kotak Mahindra Bank KTKM.NS, among lenders, says Macquarie, citing insurance fee income's larger contribution to revenue and profit before tax
** AXBK, INBK, IDFB slip about 4%; KTKM down 1.5%, HDBK, SBI and ICBK fall 0.7% each
** Banks .NSEBANK, private banks .NIFPVTBNK down about 1.7% and 1.9%, respectively; state-owned lenders .NIFTYPSU drop 0.9%
(Reporting by Bharath Rajeswaran in Bengaluru)
((bharath.rajeswaran@thomsonreuters.com; +91 9769003463;))
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Indian banks fall as proposed insurance commission caps raise fee-income concerns (updated)
Indian banks fall as proposed insurance commission caps raise fee-income concerns