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HDFC Bank Group introduces Asset Management and life insurance offerings within GIFT City

Aug 18, 2023

By: BlinkX Research Team

On Thursday, the HDFC Bank Group made an announcement about the commencement of its mutual fund and life insurance services in Gujarat's GIFT City. HDFC Life has established HDFC International Life and Re, while HDFC Asset Management Company has set up HDFC AMC International (IFSC).

As per a joint statement by HDFC AMC and HDFC Life, the newly introduced branch of HDFC International Life and Re will provide life and health insurance products denominated in dollars to non-resident Indians (NRIs) under the brand name HDFC Life International. Among the offerings of HDFC Life International is the "US Dollar Global Education Plan," tailored to assist parents in creating a dollar-based fund to cover future expenses for their children's education abroad. Simultaneously, HDFC AMC International plans to launch six funds that will channel into various HDFC Mutual Fund schemes encompassing equity and hybrid strategies.

The statement indicates that the combined assets under management (AUM) for these strategies within domestic schemes surpass $20 billion as of the end of July. Additionally, the initial emphasis will be on attracting global institutional investors interested in Indian investments. HDFC AMC International (IFSC) will also extend portfolio management services to eligible global institutional investors.

At the launch event, Deepak Parekh, Chairman of HDFC Life and HDFC AMC, expressed his view that life insurance and mutual fund products possess significant growth potential in India, a nation with relatively low penetration levels.

Parekh highlighted that life insurance penetration in India stands at merely 3.2% of GDP compared to the global average of 7%. Similarly, mutual fund penetration in India is at 17% of GDP, while the worldwide average is 80% of GDP. He stressed the substantial room for growth in these sectors.

Parekh also acknowledged the role of international finance centers in driving global employment and investments. He advocated for a principle-based inter-regulatory framework to facilitate such growth. Parekh praised the successful efforts of the International Financial Services Centres Authority (IFSCA) in providing appropriate financial incentives, fostering a favorable business environment, and enabling the opening up of financial markets.

Source: Market Reports