Central Bank of India shares surged over four percent in the morning session on November 25, after the Reserve Bank of India gave the public sector lender the go-ahead to enter the insurance business. Through a joint venture with the Generali Group, the bank will foray into the segment.
"We would like to inform that the Reserve Bank of India (RBI) vide its letter dated 21st November 2024 has approved the bank's entry in the insurance business through a joint venture with Generali group under FGIICL and FGILICL, subject to continuous compliance of conditions stipulated by it and approval of IRDAI, the sectoral regulator," said the bank in a filing with the bourses.
At 10 am, shares of Central Bank of India were quoting Rs 54.8 per share, higher by 4.7 percent compared to the previous session.
Further, all PSU stocks surged on on November 25 after BJP-led Mahayuti alliance's triumphant victory in the Maharashtra Assembly elections. Shares of PFC, IRFC, BEL, Central Bank of India, RVNL, Bharat Dynamics, NBCC (India), GAIL, CONCOR, SAIL, among others surged in the range of 3-8 percent in an overall strong market.
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On October 15, the Competition Commission of India (CCI) had cleared Central Bank’s proposed acquisition of stakes in Future Generali India Insurance (FGIIL), and Future Generali India Life Insurance (FGLIL).
In August, Central Bank had emerged as the successful bidder to acquire stake of debt-ridden Future Enterprises' (FEL) life and general insurance ventures. Future Retail Ltd (FRL) was the flagship firm of the Kishore Biyani-led group.
Back in 2022, the National Company Law Tribunal (NCLT) had ordered insolvency proceedings against debt-ridden FRL, after allowing a petition filed by Bank of India (BoI) following loan defaults by FRL.
Over the past year, shares of Central Bank of India have gained around 23 percent, while the benchmark Nifty 50 index has risen about 22 percent during the same time period.
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