Central Bank of India Expands in Insurance Sector with Significant Stake Acquisition

State-owned Central Bank of India has acquired a notable 25.18% stake in Future Generali India Life Insurance Company Limited (FGILICL), marking its bold entry into the insurance arena. Acquired for a cash consideration of Rs 57 crore, the bank's investment was announced as part of an insolvency process.

The acquisition, involving the purchase of 65,43,80,439 shares, was completed on June 4, bolstering the bank's presence in the insurance sector. The Central Bank's regulatory filing confirmed this strategic investment, positioning the bank as a key player in insurance, alongside its traditional banking operations.

FGILICL, headquartered in Mumbai, provides a wide range of insurance products including savings, term, and health plans. Though Generali retains the majority stake at 73.99%, Central Bank of India's entry signifies a substantial expansion in its financial portfolio, aiming to capture further market opportunities.

(With inputs from agencies.)