Bank of Baroda said that it will acquire Union Bank of India's 21% stake in IndiaFirst Life Insurance Company, a joint venture between Bank of Baroda, Union Bank of India and Carmel Point Investments.
The government backed lender said that pursuant to a 'Right of First Offer' (ROFO) made by Union Bank of India (UBI) to the existing shareholders of IndiaFirst Life Insurance Company to divest 21% of its stake in the life insurance company and on completion of related processes under the shareholders agreement (SHA) and further, consequent upon receiving approvals from the respective boards of both banks, it has been decided by Bank of Baroda to acquire the 21% stake of Union Bank of India in IndiaFirst Life Insurance Company, subject to receiving all statutory and regulatory approvals.
On conclusion of this stake sale process, the revised shareholding in IndiaFirst Life Insurance Company will be Bank of Baroda-65%, Carmel Point Investments India-26% and Union Bank of India- 9%.
IndiaFirst Life Insurance Company will continue to have long term agency distribution agreement with both banks (BOB and UBI), even after this stake sale.
Bank of Baroda has a strong domestic presence spanning 8,185 branches and 11,535 ATMs and cash recyclers supported by self-service channels. The bank has a significant international presence with a network of 96 overseas offices spanning 18 countries.
The state-run bank's net profit rose 107.05% to Rs 2,197.03 crore on 0.37% increase in total income to Rs 20,482.26 crore in Q3 December 2021 over Q3 December 2020.
The scrip slumped 4.19% to currently trade at Rs 108.75 on the BSE.
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