HDFC Bank plans to sell Birla Sun Life Insurance (BSLI), which is a rival to its group firm HDFC Life. The Bank is adopting an ‘open architecture’ model for insurance distribution. Birla Sun Life has said that it expects to reap the full benefits of the recent deal from the next fiscal following integration and training of staff.
“We have recently signed up with HDFC Bank. We are right now in a phase where we are getting people in place, training them, getting into integration of technology, process and products. The test phase should take a couple of quarters. It is only in the next fiscal that we will get to see how it works,” said Pankaj Razdan, MD & CEO, BSLI.
According to Razdan, the life industry is also seeing resurgence after demonetisation. “We are seeing a structural shift. This year we have seen business grow 25% on the back of a 35% growth last year. While this has been an evolution for the industry, the trigger appears to have been demonetisation,” said Razdan.