Nippon Life Insurance Weighs Investment in IndusInd Bank
Nippon Life Insurance Co.’s India unit is reportedly exploring the acquisition of a minority stake in IndusInd Bank Ltd. This strategic move could enhance the insurer’s distribution capabilities by leveraging the bank’s established network.
According to sources familiar with the matter, Reliance Nippon Life Insurance Ltd. may seek up to a 9.9% stake in the Mumbai-listed lender. The initial acquisition could involve a 4.9% stake, with the possibility of increasing its holding over time. Bloomberg reported that discussions are ongoing, and a definitive transaction has yet to be confirmed.
Representatives from Nippon Life declined to comment on the potential deal. IndusInd Bank has also not responded to inquiries about the reports.
IndusInd Bank, with a market capitalization of approximately 730 billion rupees (US$8.4 billion), has been experiencing a downturn in its stock performance. Shares of the private lender fell for the third consecutive session on Friday, dropping 3.53% to close at Rs 936.80. Over the past six months, the stock has corrected by 34.36% and is nearing its 52-week low of Rs 923.40, recorded on January 27, 2025.
Market analysts are divided on the stock’s future prospects. Some experts advise long-term investors with a high-risk tolerance to consider accumulating the stock during dips, while others are cautious, projecting continued weakness in the near term. Technical indicators show the stock is trading below all major simple moving averages (SMAs), with its 14-day relative strength index (RSI) at 32.84, nearing oversold territory.
“The stock looked weak on daily charts and can slip towards Rs 900 in the near term. On the higher end, resistance will be at Rs 960. Short-term investors can consider exiting at current levels,” said Ravi Singh, senior vice-president of retail research at Religare Broking.
Separately, IndusInd Bank recently received approval from the Reserve Bank of India (RBI) for the reappointment of Sumant Kathpalia as CEO and managing director for another year, according to a report from Business Today.
