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Allahabad Bank To Sell Stake In Insurance Company

Allahabad-Bank-Exam Results

State-run lender may look at divesting its stake in Universal Sompo .

The bank’s board will meet on Friday to consider selling a part or all of its 30% stake in the venture with two Japanese insurers.

Universal Sompo General Insurance was set up by , Karnataka Bank, Indian Overseas Bank, Dabur in collaboration with Japan’s Sompo Japan Nipponkoa Insurance. Indian Overseas Bank and Karnataka Bank own 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 , 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: economictimes.indiatimes

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