Business · Companies · 8 hrs ago
Bandhan Bank warns of Rs 200 crore annual income hit from proposed insurance rules
Bandhan Bank expects a possible Rs 200 crore annual income loss if proposed rules lower commissions banks earn from selling insurance.
The Kolkata-based lender says the change would affect the wider banking industry, not just its own business.
India’s insurance regulator has proposed lower commissions for banks distributing third-party products, and banks have contacted the regulator about the proposal.
Bandhan Bank earned Rs 156 crore from distributing third-party products in the second quarter, with most of that income coming from insurance sales.
The bank plans to focus more on mutual fund distribution and introduce other products to make up for the potential shortfall.
The income hit depends on whether the proposed change takes effect, and the bank says it has several ways to reduce the impact.
Bandhan Bank said proposed lower commissions on insurance distribution could reduce its annual income by Rs 200 crore.
The bank is changing its business model and plans to focus more on mutual fund distribution to help offset the loss.
The proposed change by the Insurance Regulatory & Development Authority concerns banks’ distribution of third-party products.
Bandhan Bank earned Rs 156 crore from distributing third-party products in the second quarter, mostly from insurance sales.
Managing director Partha Pratim Sengupta said the proposal would affect the banking industry, not only Bandhan Bank.
- Who
- Bandhan Bank and the wider banking industry.
- What
- Proposed lower commissions on insurance distribution could cut Bandhan Bank’s annual income by Rs 200 crore.
- When
- The impact would occur if the proposed change takes effect. The article was published on 28 October 2026.
- Where
- Bandhan Bank is based in Kolkata, India.
- Why
- The Insurance Regulatory & Development Authority proposed lower commissions for banks distributing third-party products.
This story does not have two clearly opposing sides.
Bandhan Bank earned Rs 156 crore from distributing third-party products, mostly through insurance sales.
Sengupta discussed the proposed commission change after the bank announced its quarterly earnings.
- Potential annual income hit
- Rs 200 crore
- Second-quarter third-party product income
- Rs 156 crore
- Bank headquarters
- Kolkata
- Unsecured emerging enterprise business from Karnataka
- About 1%
- Unsecured emerging enterprise business from Maharashtra
- 2.6%
What people are saying
The proposal will affect the entire banking industry as Bandhan Bank is not isolated
We have several levers to mitigate the loss. We are introducing new areas in our product suit
There is no substantial impact likely