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  Business   Allahabad Bank may sell 30 per cent Universal Sompo stake

Allahabad Bank may sell 30 per cent Universal Sompo stake

KUMAR SHANKAR ROY
Published : Dec 1, 2015, 9:43 am IST
Updated : Dec 1, 2015, 9:43 am IST

The paid up share capital of the company stood at Rs 350 crore as on 31st March 2015

Representational Image.
 Representational Image.

The paid up share capital of the company stood at Rs 350 crore as on 31st March 2015

Kolkata

 

: State-run Allahabad Bank may sell its 30 per cent stake in Universal Sompo General Insurance Company, either partially or fully. Universal Sompo is a unique public-private partnership in Indian general insurance industry. It is a joint venture between Allahabad Bank, Indian Overseas Bank, Karnataka Bank, Dabur Investments and Sompo Japan Nipponkoa Insurance.

The joint venture was capitalised with shareholders funds of over Rs 230 crore including share premium. Universal Sompo received the licence and certificate of registration from Insurance Regulatory and Development Authority in November 2007.

The paid up share capital of the company stood at Rs 350 crore as on 31st March 2015.

 

A meeting of the board of directors of the Allahabad bank will be held on December 4 to consider according approval to float request for proposal (RFP) for appointment of consultant for advising and undertaking redrafting of existing shareholders agreement forming insurance joint venture of the bank (Universal Sompo General Insurance Company).

The Indian government earlier in July this year allowed foreign investors to up their stake in the Indian insurance joint ventures to 49 per cent from the earlier 26 per cent.