Kotak Mahindra Bank has wrapped up the acquisition of 26% equity stake in its subsidiary Kotak Mahindra Old Mutual Life Insurance from British partner Old Mutual.
The India-based private sector lender, which paid INR12.39bn ($190.1m) in cash to Old Mutual for the remaining stake, will assume 100% ownership of the 16-year-old Kotak Mahindra Old Mutual Life Insurance.
The development is culmination of an agreement inked in April this year, according to which the fourth largest private sector lender agreed to buy the entire 26% equity stake held by Old Mutual.
In a stock exchange filing, Kotak Mahindra said: “As a follow up to that, we now wish to inform you that the bank has completed this transaction for acquisition on October 13, 2017 and KMOM is now wholly owned subsidiary (100 percent) of the bank.”
The life insurer had reported a profit of INR3bn ($46.32m) last fiscal. As of 31 March 2017, the overall net-worth of the life insurance business stood at INR18.25bn ($281.83m).