Proposed insurance commission curbs could squeeze Indian banks’ fee income

The Economic Times reports that Indian banks are assessing proposed limits on insurance commissions, which could reduce what they earn from selling policies. Central Bank of India expects its bancassurance fees to fall 33% if the proposals take effect in their current form, while Canara Bank estimates a ₹145-crore hit to fee income. Axis Bank plans to offset potential losses through higher sales volumes, changes in product mix and other fees. HDFC Bank says it is too early to assess the impact.