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PB Fintech, parent of online insurance distributor PolicyBazaar, plunged 36%, its worst single-day decline since its November 2021 debut. Among insurers, Max Financial Services fell 9.8%, HDFC Life Insurance declined 6.1%, and ICICI Prudential Life Insurance fell 4.2%. Also Read: Irdai proposes big changes to insurance commissions; companies, agents may feel the pinch Among NBFCs, L&T Finance slipped 9%, Bajaj Finance fell 5.5%, Cholamandalam Investment and Finance declined 5%, and Bajaj Finserv lost 4.1%. Axis Bank fell 4.7%, IndusInd Bank declined 4.2%, Yes Bank lost 3.4%, Kotak Mahindra Bank fell 1.9%, SBI declined 1.5%, and HDFC Bank fell 1.2%. The Nifty Bank index fell 2%, while the Nifty Financial Services index declined 2.4%. Irdai's consultation paper on insurance distribution proposes lower Expense of Management (EoM) limits for life and general insurers and segment-level caps on commissions. The proposed framework also seeks changes in bancassurance, NBFC-led distribution, loan-linked insurance and distributor remuneration. Also Read: IRDAI proposes clawback of commissions in case of mis-selling "The proposals to lower the expense of management limits and move to segment-specific commissions hit distributors and digital platforms hardest, because their earnings depend directly on commission rates. That is why distribution-led businesses have taken a sharper knock than the insurers themselves," said Rajesh Singla, CEO and fund manager at Alpha AMC. Banks Banks more dependent on insurance distribution could face a bigger impact if the proposals are implemented. JM Financial said insurance distribution income across its bank coverage rose from 3.5% of profit before tax in FY23 to 5.1% in FY26. Among large private banks, Axis Bank derives the most from insurance distribution fees, while ICICI Bank derives the least, JM Financial said. Small finance banks are more dependent on such income relative to their balance sheets, while public sector banks have a comparatively smaller contribution, the brokerage said. NBFCs Analysts said NBFCs too are among the top distributors of insurance products. "NBFCs derive part of their fee income from insurance distribution and should be negatively impacted," said Jefferies in a client note. Among major NBFCs, L&T Finance, Piramal Finance and Cholamandalam Investment and Finance have higher exposure, while Shriram Finance has lower exposure based on FY26 insurance commission, said the brokerage. (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price (What's moving Sensex and Nifty Track latest market news, stock tips, Budget 2025, Share Market on Budget 2025 and expert advice, on ETMarkets. Also, ETMarkets.com is now on Telegram. For fastest news alerts on financial markets, investment strategies and stocks alerts, subscribe to our Telegram feeds .) Subscribe to ET Prime and read the Economic Times ePaper Online.and Sensex Today. Top Trending Stocks: SBI Share Price, Axis Bank Share Price, HDFC Bank Share Price, Infosys Share Price, Wipro Share Price, NTPC Share Price
document fetched 2026-09-25 02:59