The banking giant HDFC Bank Ltd. up to ₹69.9 crore in Go Digit-Life Insurance Ltd. invest for a stake of around 9.95%. Go Digit or Digit Insurance is a Bengaluru based general insurance company that offers auto insurance, health insurance, travel insurance, property insurance, marine insurance and liability insurance.

The private lender said in an exchange application today that HDFC Bank has partnered with Go Digit Life Insurance Ltd. has concluded an “indicative and non-binding term sheet”. This summarizes the main terms of a proposed investment of £49.9m to £69.9m by HDFC Bank in two tranches by subscribing for Go Digit shares for an equity interest of up to 9.944%.

The bank has stated that the company intends to conduct life insurance business in India, subject to the issuance of a certificate of registration by the Insurance Regulatory and Development Agency of India (IRDAI).

HDFC Bank sells life, general and health insurance and mutual fund products (third party). The bank’s revenues from this business increased 24% to ₹4,422 billion from 3,573 crore in FY22. In life insurance, HDFC Bank adopted an open architecture for insurance distribution with eight insurers and premium mobilization for FY22 was ₹6,819 crore. In non-life insurance, HDFC Bank’s premium generation in FY22 was ₹2,270 crore.

In line with the sector, the private bank’s stock opened higher at ₹1,471.6 and rose to a daily high of ₹1,480.35 on the NSE. The stock is trading higher than the 20-day, 50-day, 100-day, and 200-day moving averages, but lower than the 5-day moving averages.

The banking sector also opened in the green and is currently up 0.94%, while the benchmark Sensex opened 0.70% higher.