In a strategic move to diversify beyond core banking, Central Bank of India has acquired a 24.91% equity stake in Future Generali India Insurance Company Limited (FGIICL) for up to ₹451 crore. The acquisition, disclosed via a regulatory filing, was made under the Insolvency and Bankruptcy Board of India (IBBI) regulations following a Letter of Intent dated August 20, 2024.
This marks the public sector lender’s entry into the insurance space, positioning it to expand its financial services portfolio. Central Bank of India stated that the investment is a strategic opportunity, given FGIICL’s strong market presence, broad distribution network, and competitive valuation. The bank has secured all required approvals from the Competition Commission of India (CCI), Reserve Bank of India (RBI), and the Insurance Regulatory and Development Authority of India (IRDAI).
Established in 2006, FGIICL operates across 150+ locations in India and offers a wide range of insurance products including retail, commercial, personal, and rural policies. Generali, the global insurance giant, holds a 74% majority stake in the company.
Earlier this year, Central Bank of India reported a 28% year-on-year rise in net profit for Q4 FY24 to ₹1,033.6 crore, despite a slight dip in net interest income.