IDBI Bank seeks Federal Life stake saleSeptember 5 2019 by InsuranceAsia News Staff
IDBI Bank is planning to sell its 48% stake in Mumbai-headquartered IDBI Federal Life Insurance according to an announcement from the firm on September 4.
The bank is looking to raise capital following an injection from the government. The government owns 49% of the bank while LIC owns 51% — the stake was bought after the bank fell into trouble.
An announcement said: “JP Morgan India Private has been mandated for advising and managing a strategic review process for IDBI Federal Life Insurance which may result in, inter alia, potential divestment of all or part of the stake held by IDBI Bank in IDBI Federal Life Insurance Company.”
While IDBI owns 48% of IDBI Federal Life, Federal Bank and Ageas International own 26% each, respectively.
IDBI Bank has been looking for an investor in the firm since 2017 but the move was delayed when LIC invested in the bank.
The bank said in a regulatory filing: “We hereby advise that the board of directors of IDBI Bank at its meeting held on January 21 has approved in-principle, the proposal to re-initiate divestment process of IDBI stake in IDBI Federal Life Insurance subject to statutory/regulatory approvals, if any, required to be obtained in this regard.”
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