Karnataka Bank shares in focus amid HDFC Life tie-up on insurance products

Shares of Karnataka Bank will be in focus on Tuesday morning after the lender entered into a strategic corporate tie-up with HDFC Life Insurance company to offer life insurance products. In a filing to stock exchanges post market hours of Monday, Karnataka Bank said its century old banking experience and HDFC Life's expertise in providing life insurance products may deliver a host of benefits to its customers seeking financial security and life protection.  

The bank stock has rallied 59.4 per cent in the last six months against 1.26 per cent drop in the BSE Bankex during the same period. In the last one month though, the scrip is down 2 per cent. Karnataka Bank Ltd reported a 19.7 per cent drop in net profit at Rs 330.30 crore for the September quarter compared with Rs 412 crore in the same quarter last year. Karnataka Bank's NII was up 2.4 per cent for the quarter at Rs 822.4 crore compared with Rs 802.80 crore in the same quarter last year.

The bank expects its association with HDFC Life to add value to its customers in the form of access to products in life protection. "Further, at the heart of this association, both the organisations are committed to leveraging digital technologies to simplify and enhance the customer experience, making financial products and services more accessible and user-friendly," said Sekhar Rao, Executive Director of Karnataka Bank.

Srikrishnan H, MD & CEO of Karnataka Bank said the  collaboration aligns with the lender's commitment to enhance its suite of financial products and services available as a choice to customers. "It reflects our dedication to providing holistic financial solutions through our wide distribution and digital network and ensuring the well-being and security of our customers and their families."

Vibha Padalkar, MD & CEO at HDFC Life said: "Given the under-penetration, there is tremendous potential for life insurance in our country. Life insurance is the first step towards financial planning and we believe it is a must have for every individual with responsibilities. With our rich experience in managing bancassurance partnerships, we aim to offer a comprehensive suite of product solutions and best-in-class servicing, leveraging our investments in technology. We look forward to working closely with the ataka Bank team for the benefit of their customers."

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