IDBI Bank to sell entire stake in life insurance arm to JV partner

IDBI Bank will offload its balance 25 per cent stake in Ageas Federal Life Insurance Company (AFLI) to Ageas Insurance International NV.

The board of directors has approved to sell IDBI Bank’s entire stake of 200 million equity shares in AFLI to Ageas pursuant to exercise of Call Option by Ageas.

The details of the sale would be communicated once the share purchase agreement is executed, the bank informed BSE. The stake would bring in resources that are expected to augment the capital base of the private sector lender.

In December 2020, IDBI Bank had sold a 23 per cent stake in an insurance joint venture to Ageas Insurance International JV for Rs 507 crore. This raised Ageas stake to 49 per cent in the insurance company.