Nippon Life Insurance Co.’s India unit is reportedly considering acquiring a minority stake in IndusInd Bank Ltd., a move that could bolster the insurer’s distribution capabilities through the bank’s 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, with an initial acquisition of 4.9% and the possibility of increasing its holding over time.
Bloomberg reported that discussions are ongoing, and there is no certainty that a transaction will materialize. A representative for Nippon Life declined to comment, while IndusInd Bank has not responded to inquiries regarding the potential deal.
IndusInd Bank, which has 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 continued their decline for the third consecutive session on Friday, dropping 3.53% to settle 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 trajectory. Some experts suggest long-term investors with a high-risk appetite could consider accumulating the stock on dips, while others warn of continued weakness in the near term. Technical indicators show that the stock is trading below all major simple moving averages (SMAs), with its 14-day relative strength index (RSI) at 32.84—approaching 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 secured 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.
What are your thoughts on Nippon Life’s potential stake in IndusInd Bank? Share your insights in the comments below.
