BUZZ — Indian banks fall as proposed insurance commission caps raise fee — income concerns

* Insurance regulator's proposal to tighten caps on insurance commissions from the financial year 2028 poses a slight earnings risk for banks, says Jefferies * It "will be a tad negative for banks' bancassurance fees, especially credit-protect premiums, as it's mostly single premium with high commissions," says Jefferies * Says IndusInd Bank and IDFC First Bank have higher exposure; ICICI Bank and state-owned lenders have lower risk, citing FY2026 banca commission/FY2027 profit * Axis Bank and HDFC Bank will be affected more than State Bank of India, ICICI Bank and Kotak Mahindra Bank, among lenders, says Macquarie, citing insurance fee income's larger contribution to revenue and profit before tax * AXBK, INBK, IDFB slip about 4%; KTKM down 1.5%, HDBK, SBI and ICBK fall 0.7% each * Banks, private banks down about 1.7% and 1.9%, respectively; state-owned lenders drop 0.9% (Reporting by Bharath Rajeswaran in Bengaluru) ((mailto:bharath.rajeswaran@thomsonreuters.com; +91 9769003463;)