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Canara Bank sees up to Rs 200 cr hit to distribution income under proposed IRDAI norms

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Canara Bank sees up to Rs 200 cr hit to distribution income under proposed IRDAI norms

Canara Bank sees up to Rs 200 cr hit to distribution income under proposed IRDAI norms

Canara Bank expects a Rs 120-145 crore annual hit to its life insurance distribution income if the proposed IRDAI norms are implemented, with the overall impact across its distribution business estimated at up to Rs 200 crore. The bank’s FY26 fee income stood at Rs 9,649 crore, while its disclosed bancassurance business was Rs 639.20 crore.

Bengaluru based public sector lender Canara Bank expects the proposed IRDAI (Insurance Regulatory Development Authority of Infdia) distribution norms to have an overall impact of up to Rs 200 crore on its distribution income , with the largest impact coming from its life insurance distribution franchise, Managing Director & CEO Brajesh Singh told ETBFSI. The bank estimates that its life insurance distribution income could take a hit of around Rs 120-145 crore annually if the proposed norms are implemented in their current form. “The guideline is still a draft, but even if we take it hypothetically, when it is implemented, it will mostly affect our life insurance distribution franchise. We have calculated the impact based on the existing level of business, and the total dent would be around Rs 120-145 crore,” Singh said.

He added that when the impact across all the products distributed by the bank is taken together, the total dent would not exceed Rs 200 crore. “Taken together, across everything that we distribute, the dent will not be more than Rs 200 crore in any case,” Singh said.


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