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Updated on: Saturday, June 27, 2020, 01:19 PM IST

IDBI to raise Rs 595 crore by stake sale in IDBI Federal Life Insurance

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The board of directors at IDBI Bank has allowed the bank to sell stakes of IDBI Federal Life Insurance Company Limited (IFLI) worth Rs 595 crore to Ageas and Federal Bank. However, it is subjected to regulatory approvals and other approvals.

The private lender stated in its filing to exchange that the bank will sell stakes of IDBI Federal Life Insurance Company Limited (IFLI) to the extent of 23 per cent to Ageas and 4 per cent to Federal Bank at a combined value of about Rs 595 crore.

With this stake sale, Federal Bank will now hold up to 30 per cent and Ageas will now have 49 per cent holding in insurance firm. By selling the stake in the insurance firm, IDBI Bank will reduce its 48 per cent stake in the venture to 21 per cent stake.

Just few days back, South-based lender Federal Bank had stated that it will be paying over Rs 80 crore to acquire additional stake in its life insurance joint venture.

In 2019, Life Insurance Corporation (LIC) acquired 51 per cent controlling stake in IDBI Bank. Post that the bank was categorised as a private sector bank.

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Published on: Saturday, June 27, 2020, 01:19 PM IST
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