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RBL Bank’s bancassurance income to take 50-60% dent under IRDAI’s proposed distribution norms

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RBL Bank’s bancassurance income to take 50-60% dent under IRDAI’s proposed distribution norms

RBL Bank’s bancassurance income to take 50-60% dent under IRDAI’s proposed distribution norms

RBL Bank has flagged a potential 50-60 per cent hit to its bancassurance income if IRDAI’s proposed distribution norms are implemented without changes, putting pressure on a fee stream that grew 31 per cent to nearly Rs 300 crore in FY26.

* Bancassurance income rose 31.1% YoY to Rs 296.49 crore in FY26 * Life insurance contributed Rs 272.49 crore, while general insurance contributed Rs 24 crore * Management estimates minimum 50-60% impact if proposed IRDAI norms go through unchanged * Potential annual impact works out to around Rs 148-178 crore based on FY26 income * Core fee income grew 12% YoY to Rs 1,040 crore in Q2 FY27 * Fee income ratio fell to 56.5% from 70.7% a year ago

RBL Bank, a subsidiary of Emirates NBD, has flagged a potential 50-60 per cent hit to its bancassurance income if the proposed distribution norms of the Insurance Regulatory and Development Authority of India (IRDAI) are implemented in their current form. 23 crore in FY25, according to its annual report. 49 crore of the FY26 income, while general insurance contributed Rs 24 crore. IRDAI’s proposed framework seeks to overhaul insurance distribution economics, including bringing back product-level commission caps, tightening expense-of-management limits and restructuring the existing distributor framework. The consultation paper also proposes tighter conditions around insurance bundled with loans and greater disclosure of commissions.



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