Au Small Finance Bank will sell health insurance products of Aditya Birla Health Insurance as part of a corporate agency tie-up agreement.
“The bank (Au Small Finance Bank) has entered into agreement with Aditya Birla Health Insurance Company Ltd (ABHICL) to act as a corporate agent for health insurance business,” the bank said in a regulatory filing.
Au said this tie-up will be beneficial for both the companies mutually in terms of business, market penetration as well as reach.
The AU Small Finance Bank provides services such as savings and current accounts, term deposits, debt cards, insurance, retail loans as well as wholesale banking.
Initially a non-banking finance company (NBFC) — Au Financiers — based in Jaipur, Au transformed into the role of an SFB as Au Small Finance Bank (SFB) after getting a licence from the Reserve Bank in December 2016.
It commenced the small finance banking operations in April this year and later in July hit the stock market in an initial public offer (IPO).
In the first quarter ended June of the current fiscal, the company’s net profit grew by 4.6 per cent to Rs.61.83 crore, as against Rs. 59.08 crore in the same period a year ago.
The total assets, as on June 30, 2017 stood at Rs. 10,972.83 crore.
Shares of the company were trading at Rs. 562.40, down 0.27 per cent on BSE in the afternoon today.