Central Bank of India secures RBI nod for insurance foray via joint venture With Generali Group
The partnership will operate under Future Generali India Insurance Company Ltd (FGIICL) and Future Generali India Life Insurance Company Ltd (FGILICL).
“…we would like to inform that the Reserve Bank of India (RBI) vide its letter dated 21st November 2024 has approved the Banks entry in the Insurance Business through a joint venture with Generali group under FGIICL and FGILICL, subject to continuous compliance of conditions stipulated by it and approval of IRDAI, the Sectoral Regulator,” a stock exchange filing read.
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The RBI’s approval, conveyed via a letter dated November 21, 2024, is contingent on the bank’s continued compliance with stipulated conditions. The joint venture also requires the nod of the Insurance Regulatory and Development Authority of India (IRDAI), the sectoral regulator.
In October, the Competition Commission of India (CCI) cleared the Central Bank of India’s proposed stake acquisition of stakes in Future Generali India Insurance and Future Generali India Life Insurance. Central Bank of India is a scheduled commercial bank.
“The proposed combination envisages acquisition by Central Bank of India of 24.91 per cent equity stake in Future Generali India Insurance Company Ltd (FGIICL),” CCI said in a release.
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CCI has also approved a 25.18% equity stake in Future Generali India Life Insurance Company Ltd (FGILICL) through bid/resolution plan submitted by the Central Bank of India under the Insolvency and Bankruptcy Board of India (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.
FGILICL provides savings insurance, investment plans (ULIP), term insurance, health insurance, child, retirement, rural, and group insurance plans.
In August, the Central Bank of India announced that it had emerged as the successful bidder for the stake acquisition of debt-ridden Future Enterprises Ltd (FEL) in life and general insurance ventures.
The state-owned bank said it has been declared the successful bidder by the Committee of Creditors (CoC) for the sale of Category 1 assets of FEL in Future Generali India Life Insurance Company Ltd and Future Generali India Insurance Company Ltd.
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Shares of Central Bank of India Ltd ended at ₹52.22, up by ₹0.69, or 1.34% on the BSE.
