Allahabad Bank to hire consultant to advise it on stake sale in insurance JV

Allahabad Bank has decided to hire a consultant to advise it on its proposed stake sale in the insurance joint venture (JV) Universal Sompo General Insurance Co. The bank holds 30% interest in the JV and planning to divest its share fully or part of it even as its overseas partner Sompo Japan Nipponkoa Insurance plans to raise its holding to up to 49% from 26% at present.

India has recently allowed foreign insurance companies to raise their investment up to 49% in Indian insurance ventures from the earlier cap of 26%.