India-based IDBI Bank has announced that its board has granted approval to resume the process of offloading its stake in its life insurance joint venture (JV).
IDBI Federal Life Insurance operates as a JV formed by the bank, Federal Bank and Belgium-based insurer Ageas.
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IDBI holds 48% stake, while Federal Bank and Ageas own 26% each.
“In continuation of IDBI Bank’s earlier disclosure dated February 21, 2017, we hereby advise that the board of directors of IDBI Bank at its meeting held on Monday, January 21, 2019 has approved in-principle, the proposal to re-initiate divestment process of IDBI stake in IDBI Federal Life Insurance Co. Ltd subject to statutory/regulatory approvals, if any, required to be obtained in this regard,” the bank said in a regulatory filing to BSE.
With the latest move, IDBI joins other state-owned banks that are looking to offload their stake in insurance JV.
In November last year, Oriental Bank of Commerce started the process to sell its 23% stake in Canara HSBC Oriental Bank Life Insurance.
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