IDBI bank declares to sell stake in IDBI Federal Life Insurance Co.

After the infusion of Rs 9300 crore, IDBI Bank has declared its plans of selling stake in its insurance joint venture IDBI Federal Life Insurance Co. In a newspaper advertisement the bank has said that it has mandated J P Morgan India to manage the process.

“JP Morgan India Pvt. Ltd has been mandated for advising and managing a strategic review process for IDBI Federal Life Insurance Co. Ltd which may result in, inter alia, potential divestment of all or part of the stake held by IDBI Bank in IDBI Federal Life Insurance Company,” IDBI Bank said.

The bank further said that JP Morgan will invite expressions of interest by way of submission of comprehensive, non-binding proposal from potential investors for evaluating the potential transaction.

IDBI Bank owns 48% of the insurance company, whereas, Federal Bank and Ageas Insurance International NV own 26% each.

“We hereby advise that the board of directors of IDBI Bank at its meeting held, 21 January, 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 had said in a regulatory filing.