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IRDAI commission curbs: IndusInd, IDFC First most exposed; ICICI, PSBs less at risk, says Jefferies

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IRDAI commission curbs: IndusInd, IDFC First most exposed; ICICI, PSBs less at risk, says Jefferies

IRDAI commission curbs: IndusInd, IDFC First most exposed; ICICI, PSBs less at risk, says Jefferies

IndusInd Bank’s FY26 bancassurance income was equivalent to 18% of its FY27 normalised profit, followed by IDFC First Bank at 17%; the corresponding exposure was 1% for ICICI Bank and 2% each for SBI, PNB and Bank of Baroda, Jefferies said.

IRDAI's new commission rules: Who all from insurance sector will be impacted?

The Insurance Regulatory and Development Authority of India’s proposed caps on insurance commissions could put pressure on banks’ bancassurance fee income from FY28, with IndusInd Bank and IDFC First Bank carrying the highest earnings exposure among lenders tracked by Jefferies. The proposed norms are particularly relevant for credit-protection insurance , where premiums are largely single-premium products and commissions are relatively high, Jefferies said in its latest report. However, the brokerage expects the impact on banks’ overall earnings to remain limited, with the exposure varying sharply across lenders based on their dependence on bancassurance income . Advt

IndusInd, IDFC First carry highest exposure According to Jefferies, bancassurance income in FY26 was equivalent to 18% of FY27 normalised profit at IndusInd Bank and 17% at IDFC First Bank. The exposure was lower for AU Small Finance Bank at 11%, Axis Bank at 9%, HDFC Bank at 7% and Kotak Mahindra Bank at 5%. Among large private and PSU lenders, SBI’s bancassurance income was equivalent to 2% of FY27 profit, while the ratio stood at 2% for PNB and Bank of Baroda. ICICI Bank had the lowest exposure at 1%, according to Jefferies.


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