The Central Bank of India has completed the acquisition of a 24.91% equity stake in Future Generali India Insurance Company Ltd. (FGIICL), marking its foray into the insurance sector. The acquisition, valued at up to ₹451 crore, was finalised on June 4, following all necessary regulatory approvals, the scheduled commercial bank announced in a filing to the exchanges on Thursday.

The development follows a long-running resolution process involving debt-laden Future Enterprises Ltd (FEL), which previously held a 25% stake in FGIICL. In August last year, the Central Bank of India emerged as the successful bidder for FEL’s stake in the general insurance joint venture after being selected by the Committee of Creditors under the Insolvency and Bankruptcy Code (IBC) process. The Letter of Intent confirming the bank’s acquisition was received on August 20, 2024, under Regulation 29 of the IBBI (Insolvency Resolution Process for Corporate Persons) Regulations, 2016.

Prior to the completion of the acquisition, the Competition Commission of India (CCI) had, in October, cleared the proposed transaction involving the bank’s investment in both Future Generali India Insurance and Future Generali India Life Insurance. Regulatory approvals from the Reserve Bank of India (RBI) and the Insurance Regulatory and Development Authority of India (Irdai) were also secured.

Future Generali India Insurance, incorporated in 2006 and headquartered in Mumbai, operates in more than 150 locations across India. It offers a wide spectrum of products across retail, commercial, personal, and rural segments. The company reported a Gross Written Premium (GWP) of ₹4,910.89 crore in FY24, up from ₹4,546.23 crore in FY23.

Before this transaction, global insurer Generali held a 74% stake in the venture. The Central Bank’s acquisition gives it a significant minority holding, aligning with its strategic ambition to diversify revenue streams and enter the insurance sector with an established player at a reasonable valuation.

As of 12:27 p.m., shares of Central Bank of India were trading at ₹40.39 on the NSE, up 0.42% from the previous close of ₹40.22. The stock opened at ₹40.60 and touched an intraday high of ₹40.75, marking a 1.32% gain from the previous close.