Kotak Mahindra Bank, one of the leading private sector lenders, announced that the bank on Tuesday received approval from Reserve Bank of India (RBI) to form a subsidiary to enter the General Insurance business.

The bank had earlier received an in-principle approval from Insurance Regulatory and Development Authority (IRDA) for incorporation of a General Insurance company. The company would now be required to apply and complete the registration process with IRDA to act as a General Insurance Company, subject to the provisions of Insurance Act 1938, Companies Act, 2013, regulations notified by IRDA and all other laws prevailing in India.

Shares of the bank declined Rs 22.75, or 1.9%, to trade at Rs 1,176.85. The total volume of shares traded was 89,565 at the BSE (12.16 p.m., Tuesday).