Central Bank of India has won the race to acquire the shares of Future Enterprises Ltd (FEL) in its life and general insurance ventures.
The PSU bank said in a regulatory filing on Wednesday it has been declared the successful bidder by the committee of creditors (CoC) for the sale of Category 1 assets of FEL’s shareholding in Future Generali India Life Insurance Company Ltd and Future Generali India Insurance Company Ltd.
Central Bank of India added the letter of intent was issued on Tuesday.
Future Enterprises Limited (FEL) owns around a 25 per cent stake in Future Generali India Insurance Company and a 33 per cent stake in Future Generali Life Insurance.
According to its website. the life insurance company has a presence in over 1,300 owned and partner locations in India which offers insurance solutions across both the individual and group fronts.
Italy’s Generali is the largest shareholder in the company with a stake of 73.99 per cent. The insurance company had ₹7,968 crore of assets under management at the end of March 31, 2024.
On the other hand, the general insurance venture has more than ₹5,300 crore of assets under management.
The deal marks Central Bank of India's entry in the insurance segment. The state-owned lender reportedly outbid other contenders such as JC Flowers and Authum. Shares of the bank on Wednesday ended with modest gains at ₹60.68 on the BSE.
Future Enterprises went into insolvency after it defaulted on loans worth ₹25,000 crore.
Central Bank had posted a net profit of ₹879.94 crore in the second quarter against ₹418.43 crore a year ago.