# PSU Banks See Limited Impact from Irdai Cuts

> Public sector banks expect minimal hit from Irdai's insurance commission reforms as private lenders weigh revenue shifts.
- Title: PSU Banks See Limited Impact from Irdai Cuts | Shortify
- Summary: Public sector banks expect minimal hit from Irdai's insurance commission reforms as private lenders weigh revenue shifts. India's public sector banks…
- Keywords: irdai, psu banks, canara bank, axis bank, hdfc bank, indian bank, pnb, bancassurance, insurance distribution, commission cuts, business, money
- Source: Financialexpress — https://financialexpress.com/business/banking-finance-psu-banks-see-limited-impact-from-irdai-commission-cuts-private-peers-assess-hit-4364824
- Author: Narayanan V
- Published: 2026-10-19T11:50:16+00:00
- Read time: 1 min
- Topics: irdai, psu banks, canara bank, axis bank, hdfc bank, indian bank, pnb, bancassurance, insurance distribution, commission cuts, business, money
## Irdai's insurance reforms
Irdai released consultation paper proposing insurance distribution economics overhaul.
## Canara Bank impact
Canara Bank expects annual hit of ₹120-145 crore to life insurance distribution income.
## Canara Bank's overall impact
Canara Bank's distribution business impact estimated at less than ₹200 crore annually.
## Canara Bank's profit context
Canara Bank earned ₹19,000 crore in profits last year with ₹457.79 crore from life insurance distribution.

> Taken together, across everything that we distribute, the dent will not be more than Rs 200 crore in any case. Considering the size of our profits, which was ₹19,000 crore last year
## Indian Bank's stance
Indian Bank expects minimal impact on its bancassurance income of ₹200 crore.

> First of all, our Bancassurance income itself is around Rs 200 crore. So, it will not have any substantial impact
## Punjab National Bank's view
Punjab National Bank awaits Irdai's final guidelines before adjusting bancassurance plans.

> As of now, even if we assume that the same draft guideline gets implemented, hardly any impact will be there. It is in the range of around ₹350-400 crore
## Private lenders' response
Axis Bank expects higher sales volumes to offset potential revenue loss while HDFC Bank assesses impact.
## Key takeaway

India's public sector banks anticipate small revenue impact from Irdai's insurance distribution reforms while private lenders assess potential revenue changes.