Former State Bank of India (SBI) chairman Arundhati Bhattacharya is planning to foray into the general insurance business in India.
Sources familiar with the matter were quoted by Live Mint as saying that Bhattacharya has teamed up with former AIG country head and CEO Sunil Mehta, and ex-SBI director Deepak Ishwarbhai Amin to launch the new firm.
The new firm, which will operate under Welmo Fintech brand, has been recently registered. It has a paid-up share capital of INR100,000 ($1393.25).
“They will soon be approaching the insurance regulator to obtain an R1 approval,” a source told the publication.
The Insurance Regulatory and Development Authority of India (IRDAI) initially issues R1 as the first stage of approval. Subsequently, IRDAI issues R2 and R3 approvals.
Under the existing regulation, Welmo Fintech will have to obtain at least INR1bn ($13.93m) as paid-up equity share capital to secure the second stage of approval.
“They are looking to raise capital from venture capital investors,” the source stated.
Bhattacharya resigned as SBI chairperson in 2017. Following her exit from SBI, she served as the director of Piramal Enterprises as well as Reliance Industries, among others.
In 2017, IRDAI issued licences to Acko General Insurance, Go Digit General Insurance, DHFL General Insurance and Edelweiss General Insurance.