Post-merger preparations: PNB seeks time to offload stake in insurance JV

Union Bank holds around 46 per cent stake in Star Union Dai-ichi Life Insurance and Andhra Bank is a part of IndiaFirst Life Insurance with 30 per cent stake

Punjab National Bank (PNB) has written to the Insurance Regulatory and Development Authority of India (Irdai), seeking time for shedding stake in an insurance company, after its amalgamation with Oriental Bank of Commerce (OBC) and United Bank of India.

“We do not want to go for a distress sale, as it will impact the valuation of the insurance company. We have written to the Irdai seeking time window for selling stake in one of the two insurance companies,” a senior PNB executive said.

According to Irdai guidelines, a bank cannot hold more than 10 per cent stake in two insurance companies. At