Irdai’s proposed insurance commission caps may hit smaller banks harder
The impact is expected to be more pronounced among private banks, particularly mid-sized and smaller lenders, for whom insurance distribution comprises a much higher share of other income. Larger banks, however, are better placed to absorb some of the losses. At ICICI Bank’s post-results press conference, executive director Sandeep Batra said bancassurance fees account for less than 1% of the bank’s total income, making the impact on profits minimal.
