Central Bank of India gets RBI Permission to Enter Insurance Business in Partnership with Generali Group
The Central Bank of India, a state-owned lender, has received approval from the Reserve Bank of India (RBI) to enter the insurance sector through a joint venture with the Generali Group. This collaboration will operate under two entities: Future Generali India Insurance Company Ltd (FGIICL) and Future Generali India Life Insurance Company Ltd (FGILICL).
In a regulatory filing, the bank stated:
“The Reserve Bank of India, via its letter dated November 21, 2024, has granted approval for the bank’s entry into the insurance business in partnership with the Generali Group under FGIICL and FGILICL. This approval is subject to compliance with stipulated conditions and further approval from IRDAI, the sectoral regulator.”
CCI Approval for Stake Acquisition
Earlier in October, the Competition Commission of India (CCI) approved the Central Bank of India’s proposal to acquire stakes in the two insurance companies. According to the CCI:
- The bank will acquire 24.91% equity in FGIICL.
- A 25.18% equity stake in FGILICL will be acquired under a bid/resolution plan through the Insolvency and Bankruptcy Board of India’s regulations.
Overview of FGILICL Services
FGILICL offers a range of insurance products, including:
- Savings and investment plans (ULIPs)
- Term insurance
- Health insurance
- Child and retirement plans
- Rural and group insurance schemes
Background on the Acquisition
In August 2024, the Central Bank of India announced it had successfully bid for the stake acquisition of debt-ridden Future Enterprises Ltd (FEL) in its life and general insurance ventures. The bank was declared the successful bidder by FEL’s Committee of Creditors (CoC) for the sale of its assets in FGIICL and FGILICL.
The entry into the insurance business marks a significant diversification step for the Central Bank of India, further strengthening its position in the financial services sector.
