Federal Bank Secures RBI Approval for 4% Stake Acquisition in Ageas Federal Life

Federal Bank has received crucial approval from the Reserve Bank of India (RBI) to acquire an additional 4% stake in Ageas Federal Life Insurance Company Limited (AFLIC). This strategic move will increase Federal Bank's total shareholding in AFLIC from 26% to 30%. The acquisition involves purchasing 3.2 crore equity shares at ₹30.45 each, amounting to ₹97.44 crore. The transaction is also subject to approval from the Insurance Regulatory and Development Authority of India (IRDAI) and is expected to be completed by October 31, 2025.

 

This expansion underscores Federal Bank's commitment to strengthening its presence in the insurance sector, aligning with its broader strategy to enhance distribution channels and market presence. AFLIC reported a net profit of ₹107 crore in FY24, with assets under management of ₹17,455 crore.

 

Source: The Economic Times, CNBC-TV18, Moneycontrol.