Central Bank Of India Share Price Surges On RBI's Nod For Insurance JV With Italy's Generali

Shares of Central Bank Of India Ltd. rose 10% on Monday after it received approval from the Reserve Bank of India to enter the insurance business through a joint venture with Italian major Generali Group.

The public sector bank will start a JV with Generali Group with its local arms Future Generali India Insurance Co. and Future Generali India Life Insurance Co., subject to continuous compliance of conditions stipulated by RBI and approval of insurance regulator Irdai.

Last month, the Competition Commission of India approved the Central Bank of India's proposed acquisition of 24.91% shareholding in FGIICL and 25.18% shareholding in FGILICL through a resolution plan submitted by the lender under insolvency and bankruptcy rules.

FGIICL is a general insurance company and provides personal insurance, commercial insurance, social and rural insurance, etc.

Earlier in August, the Central Bank of India announced that it had emerged as the successful bidder for the stake acquisition of debt-ridden Future Enterprises Ltd. in life and general insurance ventures.

State-owned Central Bank of India posted a 51% jump in profit at Rs 913 crore in the second quarter ended September 2024. The lender had earned a net profit of Rs 605 crore in the same quarter a year ago

Central Bank's share price rose as much as 10% during the day to Rs 57.96 apiece on the NSE. It was trading 7.68% higher at Rs 56.34 apiece, compared to a 1.73% advance in the benchmark Nifty 50 as of 11:30 a.m.

It has risen 25% during the last 12 months and has advanced by 12% on a year-to-date basis. The total traded volume so far in the day stood at five times its 30-day average. The relative strength index was at 53.