Federal Bank entered into an agreement to purchase up to 4% stake in IDBI Federal Life Insurance Co., from IDBI Bank at a price not exceeding Rs 27.56 per equity share.
The transaction is subject to regulatory approvals from Reserve Bank of India (RBI) and Insurance Regulatory and Development Authority (IRDAI). The deal is expected to be executed in 9 months.Federal Bank currently holds 26% stake in IDBI Federal Life Insurance Co, making it an associate of the bank. Post purchase, the total stake will increase up to 30%. The announcement was made during market hours today, 8 August 2020.
Federal Bank's net profit rose 4.3% to Rs 400.77 crore on 8.6% increase in total income to Rs 3,932.52 crore in Q1 June 2020 over Q1 June 2019.
Federal Bank operates through four segments: treasury, corporate or wholesale banking, retail banking and other banking operations. The bank has 1,263 branches, 1,936 ATMs/Recyclers as on 30 June 2020.
Shares of Federal Bank rose 0.19% to Rs 52.45 on BSE. The stock hovered in the range of Rs 51.70 to Rs 53.30 in intraday.
Powered by Capital Market - Live News
Disclaimer: No Business Standard Journalist was involved in creation of this content