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Federal Bank’s Board approves stake increase in IDBI Federal Life Insurance Co

The Board of Federal Bank today approved, in principle, to purchase additional stake of up to 4% in the equity capital of IDBI Federal Life Insurance Co (IFLIC) from IDBI Bank, subject to price finalisation and all relevant regulatory approvals.

In a regulatory filing, Federal Bank said that it currently holds a 26% stake in IFLIC, making it an associate of the Bank and post purchase the total stake may increase up to 30%.

IDBI Federal Life Insurance has an asset size of Rs. 9,226 crore and recorded a turnover of Rs.151 crore as on March 31, 2019. 

While the acquisition is expected to be completed within 6 months, the Federal Bank said the nature of consideration (cash or share swap) is yet to be decided.

The bank also said the cost of acquisition or the price at which the shares will be acquired is yet to be decided. 

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