Kotak Mahindra Bank has bought Old Mutual Fund's 26 percent in Kotak Mahindra Old Mutual Life Insurance and the sale has ended Old Mutual's joint venture with Kotak Mahindra Bank.
Gaurang Shah, President-Asset Management, Insurance & International Business at Kotak Mahindra Bank said the reason for buying the stake was their optimism for the whole sector - broadly financial services and life insurance. Moreover, the bank's capital adequacy is very good. The capital adequacy for Kotak Life stands at 3 and so there is no need to raise capital and hence would not look at listing insurance business as of now, said Shah.
Old Mutual Fund is in the process of restructuring and they approached Kotak to buyout their stake. Moreover, with Kotak Bank always looking to grow either inorganically or organically, the strategic interest of both the entities matched and so the deal got concluded, said Shah.
On the listing front, he said that not looking at listing the life insurance company immediately.