Kotak Mahindra Bank has entered into an agreement to purchase the entire 26% equity stake held by Old Mutual plc, UK (OM) in Kotak Mahindra Old Mutual Life Insurance (Kotak Life) for a consideration of Rs 12.93 billion, subject to all regulatory and other approvals. After the completion of the transaction, Kotak Mahindra Group will hold 100% of the equity shareholding of Kotak Life.

Kotak Life is one of the leading private sector life insurance companies in India. It is currently a joint venture between Kotak Group and OM. The net-worth of Kotak Life stands at Rs 18.25 billion as on March 31, 2017.

Shares of the bank declined Rs 6.05, or 0.66%, to trade at Rs 908.50. The total volume of shares traded was 16,772 at the BSE (10.00 a.m., Friday).