Central Bank of India to Enter Insurance Business with Generali

25 Nov 2024 , 10:33 PM

Shares of Central Bank of India zoomed by 10.56% after hitting an intra-day high of ₹57.86 today, November 25, 2024. The uptick came in after RBI nodded for the bank to venture into the insurance space by tying up with Generali Group under a joint venture.

The joint venture will comprise Future Generali India Insurance Company Ltd (FGIICL) and Future Generali India Life Insurance Company Ltd (FGILICL).

The RBI approval is pending upon getting its stipulated conditions cleared by the IRDAI. The bank confirmed RBI’s nod via an exchange filing dated November 21, 2024.

The Competition Commission of India (CCI) had earlier cleared Central Bank’s acquisition of stakes in FGIICL and FGILICL in October.

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

Central Bank had won Future Enterprises Ltd’s (FEL) stake in the insurance businesses via an effective tender in August. The acquisition happened after NCLT had declared insolvency proceedings against Future Retail Ltd (FRL) in 2022.