Federal Bank’s board has given in-principle approval to acquire additional stake of up to 4% in the equity capital of IDBI Federal Life Insurance Company (IFLIC) from the IDBI Bank. The bank currently holds a 26% stake in the insurance company. Post purchase, its total stake may increase up to 30 percent.
This purchase is subject to price finalization and all relevant regulatory approvals from the Reserve Bank of India and the insurance sector regulator and the transaction may take up to six months for completion.
Federal Bank is a major Indian commercial bank in the private sector headquartered at Aluva, Kerala having more than thousand branches and ATMs spread across different States in India. It offers personal, corporate, NRI, SME banking, online banking services to its customers.