State-run lender Allahabad Bank may look at divesting its stake in Universal Sompo General Insurance.The bank’s board will meet on Friday to consider selling a part or all of its 30% stake in the general insurance venture with two Japanese insurers.
Universal Sompo General Insurance was set up by Allahabad Bank, Karnataka Bank, Indian Overseas Bank, Dabur Investments in collaboration with Japan’s Sompo Japan Nipponkoa Insurance. Indian Overseas Bank and Karnataka Bank own 19% and 15%, respectively in the joint venture, while Dabur holds a 10% stake and Sompo, 26%.
The finance ministry had earlier asked state-run banks to look at divesting their non-core assets in order to meet increasing capital requirements.
In a statement to stock exchanges, the bank said the board will consider floating a request for proposal to appoint a consultant to advise and undertake redrafting of existing shareholders agreement forming the insurance joint venture.
Source :- The Economic Times (Mumbai)
Date :- 1st December, 2015