Shares of ICICI Lombard General Insurance Company climbed about 3 percent while those of Yes Bank jumped 5 percent in morning trade on BSE on September 14 after ICICI Lombard announced it entered into a tie-up with Yes Bank.
“ICICI Lombard General Insurance Company has entered into a bancassurance tie-up with Yes Bank. The partnership will provide 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 tie-up, ICICI Lombard aims to offer innovative insurance solutions to Yes Bank’s customers across 28 states and 8 Union Territories.
“We are delighted 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 assumed coverage on the stock with a buy call.
As CNBC-TV18 reported, Jefferies has raised the target price of Rs 1,570 from Rs 1,260, up 24.60 percent.
Jefferies sees the stock as the key beneficiary of rising penetration and is of the view that there is scope for doubling of health insurance and share gains from PSUs.
Jefferies sees a 14 percent FY20-23 CAGR in premiums and 17 percent in profit. Bharti-Axa was an expensive purchase but offers synergies over 18-24 months, Jefferies said.
Read more: Bharti AXA’s general insurance business to merge with ICICI Lombard
Meanwhile, Credit rating agency ICRA has upgraded the ratings assigned to the debt instruments of YES BANK.
ICRA upgraded ratings of the bank’s infrastructure bond programme and Basel II Compliant Lower Tier II bonds to [ICRA] BBB(Stable) from [ICRA]BB+.
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