Private sector lender Federal Bank’s board has approved a proposal to buy 4% stake in IDBI Federal Life Insurance Co. Ltd. from IDBI Bank. After the stake purchase, Federal Bank’s stake in the life insurer will stand at 30%.
“[The] board of the bank has approved, in principle, to purchase an additional stake of up to 4% in the equity capital of IDBI Federal Life Insurance Co. Ltd. (IFLIC) from IDBI Bank, subject to price finalisation and all relevant regulatory approvals,” Federal Bank said in a notification to the exchanges. “[The] bank currently holds a 26% stake in IFLIC, making it an associate of the bank.
“Post purchase, the total stake may increase up to 30%,” it added.
Earlier this month, IDBI Bank board approved a proposal to sell 23-27% stake in the insurance arm. IDBI Bank has a 48% stake in the life insurance company.
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