Shares of ICICI Lombard General Insurance Company rose about 3 percent. Yes Bank traded up 5% in early trade on the BSE on September 14. After ICICI Lombard announced the signing of a deal with Yes Bank.
“ICICI Lombard General Insurance Company has entered into a bancassurance tie-up with Yes Bank. The partnership will provide the bank’s diverse customer base. Access to the insurer’s portfolio and make insurance more accessible to its customers across India. ” the company said in a media release on September14.
Through this agreement, ICICI Lombard aims to provide innovative insurance solutions. To Yes Bank customers in 28 States and 8 Union Territories.
Sanjeev Mantri, Executive Director, ICICI Lombard.
“We delight to partner with Yes Bank and serve their esteemed customers across the country. Given the progressive and technology-oriented approach of both partners. This collaboration is an ideal synergy between the two brands and value-adding to Yes Bank customers. ” said Sanjeev Mantri, Executive Director, ICICI Lombard.
“We are confident that the bank’s technology and branch network strength. Combined with the innovative product offerings and market reputation of ICICI Lombard will support our customers to fulfill their non-life insurance needs. The tie-up is an important milestone and we remain committed to creating a differentiated customer experience,” said Rajan Pental, Global Head – Retail Banking, Yes Bank.
Global brokerage firm Jefferies has taken coverage on the stock with a buy call.
According to CNBC-TV18, Jefferies has raised its target price by Rs 1,570 to Rs 24.60 percent from Rs 1,260.
Jefferies sees the stock as a major beneficiary of the growing penetration and believes it has the potential to double health insurance and gain share profits from PSUs.
Jefferies sees a 14% FY20-23 CAGR and 17% return on premiums. Bharti-Axa is an expensive purchase. But offers synergies in 18 to 24 months Jefferies said.
Meanwhile, the Credit rating agency ICRA has upgraded the ratings assigned to the debt instruments of YES BANK.
The ICRA upgrade ratings of the Bank’s Infrastructure Bond Program and the Basel II compliant Lower Tier II bonds have been upgraded from [ICRA] BB + to [ICRA] BBB (Fixed).
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