Indian private sector lender Kotak Mahindra Bank is looking to divest a minority stake in its general insurance arm, Bloomberg reported citing sources privy to the matter.

The lender, which is backed by billionaire Uday Kotak, has hired Morgan Stanley to advise on the potential stake divestment.

According to the sources, through the stake sale in Kotak General Insurance the bank could garner much as a few hundred million dollars.

The process might attract bids from both financial investors as well possible strategic partners, the sources added.

Currently, discussions are in the early stages and specifics details such as size and structure of the deal are not known.

Morgan Stanley and Kotak Mahindra Bank spokesman refused to offer any comment over the report.

According to its website, Kotak General Insurance was founded in 2015 and had 25 branches across India by the end of 2022.

The business, which employs with more than 1,300 workers, offers a wide array of insurance products such as auto, health, and commercial.

In December last year, reports emerged that Indian financial services company Aditya Birla Capital is considering a sale of its insurance brokerage business

Samara Capital, which is Amazon’s Indian private equity partner, said to have made an offer for Aditya Birla’s insurance broking unit.