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Central Bank of India Acquires Stake in Insurance Firm

Banking and Insurance

Business Honor
05 June, 2025

Central Bank of India acquires 24.91% stake in Future Generali Insurance for ₹451 crore, entering insurance sector strategically.

As a strategic step to expand its operations outside of core banking, the Central Bank of India acquired a 24.91% equity holding in Future Generali India Insurance Company Limited (FGIICL) for a maximum of ₹451 crore. The move was announced on Thursday in a regulatory filing, which formally marks the bank's entry into the insurance sector.

After obtaining a Letter of Intent dated August 20, 2024, the acquisition was completed in accordance with Regulation 29 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.Under this deal, the public sector lender will strengthen its foothold in the financial services sector and access new revenue sources outside of conventional banking.

Central Bank of India acknowledged it had received the requisite approvals from the major regulatory authorities, such as Competition Commission of India (CCI), Reserve Bank of India (RBI), and Insurance Regulatory and Development Authority of India (IRDAI). This multi-agency clearance reflects the strategic and compliant nature of the transaction.

FGIICL, being incorporated in 2006, is a solid established player in India's general insurance market. It has operations from more than 150 offices in the nation and retails an extensive range of insurance products to retail, commercial, personal, and rural segments. FGIICL's controlling 74% stake is owned by global insurance giant Generali.

The Central Bank of India views the investment as a strategic step to take advantage of FGIICL's operational track record and market standing. The deal is expected to enhance the bank's financial picture by converging bank and insurance products, providing consumers with more convergent financial solutions and reduced reliance on traditional banking income streams.

The takeover is part of the bank's strategic aim to ultimately become an integrated financial services group.