Central Bank of India shares jump 10% on RBI nod for insurance venture

Shares of Central Bank of India surged as much as 10.56% to hit an intraday high of ₹57.86 on Monday after the Reserve Bank of India (RBI) approved its entry into the insurance business through a joint venture with the Generali Group.

The bank will partner with Generali under FGIICL and FGILICL, subject to compliance with RBI conditions and approval from IRDAI, the sectoral regulator.

In an exchange filing, the bank stated, “The Reserve Bank of India (RBI), via its letter dated 21st November 2024, has approved the Bank's entry into the Insurance Business through a joint venture with Generali group under FGIICL and FGILICL, subject to compliance with stipulated conditions and approval of IRDAI.”

At 1:47 pm, shares of Central Bank of India were trading at ₹56.05, up 7.11% on the BSE.

Also read: Central Bank of India gets RBI nod for insurance JV with Generali Group

The RBI’s nod follows the Competition Commission of India’s (CCI) October clearance for Central Bank's acquisition of stakes in Future Generali India Insurance Company Ltd (FGIICL) and Future Generali India Life Insurance Company Ltd (FGILICL).

FGIICL offers personal, commercial, social, and rural insurance, while FGILICL provides a wide range of plans including ULIPs, health insurance, and retirement products.

In August, the bank successfully bid for Future Enterprises Ltd’s (FEL) stake in these insurance ventures, after insolvency proceedings against FEL’s flagship firm, Future Retail Ltd (FRL), initiated by the National Company Law Tribunal (NCLT) in 2022.

PSU stocks broadly rallied on Monday following the BJP-led Mahayuti alliance’s decisive victory in the Maharashtra Assembly elections, with gains of 3-8% across PFC, IRFC, BEL, RVNL, Bharat Dynamics, NBCC (India), GAIL, CONCOR, and SAIL.

Over the past year, shares of Central Bank of India have climbed 23%, keeping pace with the Nifty 50 index’s 22% gain.