Indian private lender IDBI Bank has announced plans to sell its stake in the life insurance joint venture with Ageas Insurance International and Federal Bank.

The deal will see IDBI Bank exit Ageas Federal Life Insurance (AFLI), which was formerly called IDBI Federal Life Insurance (IFLI). 

IFLI was renamed AFLI after IDBI Bank sold a 23% stake in the joint venture in 2020. 

“The board of directors of the Bank at its meeting held on Tuesday, 29 March 2022, has approved to sell IDBI Bank’s entire stake of 20,00,00,000 equity shares in Ageas Federal Life Insurance Company Limited (AFLI) to Ageas Insurance International NV (Ageas) pursuant to exercise of call option by Ageas,” the bank said in an exchange filing.

The 200 million equity shares make up 25% of the joint venture. 

Upon the deal completion, Ageas will control 74% stake in the venture while the remaining 26% stake will be controlled by Federal Bank. 

The bank is yet to share the details of the transaction such as the call option conditions and the price. 

Notably, the Indian government and the Life Insurance Corporation of India (LIC) control over 94% stake in IDBI Bank. 

The government-backed life insurer has a 49.24% stake in IDBI Bank and holds the management control of the lender.

The authorities are looking to privatise IDBI Bank and have been holding roadshows to gauge investor interest.