Central Bank Of India Gets RBI Nod For Insurance JV With Italy's Generali Group

Central Bank of India on Friday said it received approval from the Reserve Bank of India to enter the insurance business through a joint venture with Italian major Generali Group. The approval came a day prior.

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, an exchange filing said.

Last month, the Competition Commission of India approved 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.

FGILICL is a life insurance company and provides savings insurance, investment plans, term insurance plans, health insurance plans, plans, retirement plans, rural insurance plans and group insurance plans.

Earlier in August, the Central Bank of India announced it has 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.

Total income increased to Rs 9,849 crore during the quarter under review, as against Rs 8,412 crore in the same period last year. Net interest income increased to Rs 3,410 crore in the the July-September period as compared to Rs 3,028 crore in the corresponding period a year ago.

Shares of the state-owned lender closed 1.34% higher at Rs 52.22 apiece on Friday, ahead of the announcement, compared to a 2.54% rise in the benchmark BSE Sensex.