The announcement comes after Allianz posted strong growth in the Indian insurance market through its partner Baja Finance, which is the finance wing of Baja Auto, an Indian automobile manufacturer.
Board member Warner Zedelius told German newspaper Handelsblatt that: "We are examining the market in banking and asset management and are in talks with the authorities."
It is thought that because the company already has a presence in the territory, its costs to establish a retail banking operation will be significantly reduced.
However, Mr Zedelius declined to comment on speculation that the company's banking wing Dresdner Bank has applied for licenses to operate in India.
The latest announcement for proposed expansion follows a statement from Dresdner Bank in September, revealing that the bank was considering establishing a retail banking presence in India and China.