&w=3840&q=100)
Central Bank of India acquires 24.91% stake in FGIICL for ₹451 crore
The bank's strategic acquisition of 350.63 million shares in Future Generali India Insurance marks its entry into the general insurance sector
New Delhi
Central Bank of India has acquired a 24.91 per cent equity stake in Future Generali India Insurance Company Limited (FGIICL) for ₹451 crore. The acquisition involves the purchase of 350.63 million equity shares in cash and was completed on June 4.
The move follows the issuance of a Letter of Intent dated August 20, 2024, under Regulation 29 of the Insolvency Resolution Process for Corporate Persons (IBBI) Regulations, 2016.
The transaction was finalised after receiving all requisite regulatory approvals from the Competition Commission of India (CCI), Reserve Bank of India (RBI), and the Insurance Regulatory and Development Authority of India (Irdai).
FGIICL performance and ownership
This strategic acquisition marks Central Bank of India's entry into the general insurance sector. FGIICL reported a gross direct premium of ₹4,910.89 crore in the financial year 2023–24, providing the bank with a significant platform for expansion.
Future Generali India Insurance, incorporated in 2006 and headquartered in Mumbai, operates over 150 offices nationwide. It is engaged in providing general insurance services across retail, commercial, personal, and rural segments to both individuals and corporate clients. Generali currently holds a 74 per cent stake in the company.
Steady premium growth
Over the past three financial years, FGIICL has posted consistent growth in its gross written premium. In FY24, the figure reached ₹4,910.89 crore, an 8 per cent rise from ₹4,546.23 crore in FY23. The previous year had also seen similar growth, increasing from ₹4,210.35 crore in FY22. This represents a steady annual growth of around 8 per cent for two consecutive years.
As of 2022, the company served over 3,900 corporate clients through a network of more than 36,800 individual agents and operated over 150 branches across India.
The disclosure was made in accordance with Regulation 30 of the Sebi (Listing Obligations and Disclosure Requirements) Regulations, 2015.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Hindu
6 hours ago
- The Hindu
RBI's gold loan direction brings clarity, standardisation, greater consumer protection, says Manappuram Finance MD
'The 'Lending Against Gold and Silver Collateral Directions, 2025' notified by the Reserve Bank of India (RBI) on Friday has brought clarity, standardisation, and greater consumer protection to the gold and silver loan segment, said V. P. Nandakumar, Managing Director and CEO of Manappuram Finance Ltd. 'The guidelines on valuation, assaying, and loan-to-value (LTV) ratios are timely and progressive. In particular, the provision allowing a maximum LTV ratio of 85% for loans amount up to ₹2.5 lakh. It will significantly benefit small-ticket borrowers,' he said. Stating that the new directions have consolidated and replaced earlier circulars, he said these have create a uniform code applicable to all regulated entities, including NBFCs, banks, and cooperative institutions. 'These guidelines aim to promote transparency, ethical practices, and prudential discipline while enhancing financial access for individuals and micro-enterprises,' he said. Highlighting that the continued eligibility of gold jewellery, ornaments, and coins as collateral reflected the RBI's recognition of the critical role of gold loans in meeting short-term liquidity needs, he said the standardised assaying process—mandating borrower presence and use of reference prices from the Indian Bullion and Jewellers Association (IBJA) or SEBI-regulated exchanges—would foster uniformity across the industry. 'Manappuram Finance has long adhered to rigorous valuation norms, and we view this framework as an endorsement of our transparent and ethical lending model,' he emphasised. On the revised LTV guidelines, Mr Nandakumar said, 'The RBI has prudently capped LTVs at 85% for loans up to ₹2.5 lakh, 80% for loans between ₹2.5 and ₹5 lakh, and 75% for loans above ₹5 lakh. These thresholds strike a balance between borrower access and systemic stability. We are fully aligned with these stipulations and will implement them rigorously.' Regarding bullet repayment loans, he acknowledged the RBI's cap of 12 months for such loans, with renewals allowed only upon creditworthiness and interest repayment. On the customer conduct and protection norms, he said, 'The emphasis on clear documentation, borrower communication, and transparent auction procedures aligns with our customer-first approach. We already involve borrowers in the assaying process and provide detailed disclosures in loan agreements, and these practices will continue.' On collateral management, he said, 'We place the utmost importance on secure storage, stringent internal audits, and surprise verifications. The RBI's directives reinforce our long-standing commitment to safeguarding customer assets.' Welcoming the RBI's provisions for fair compensation in the event of loss, damage, or delayed return of pledged assets, and its emphasis on disbursing loans directly into verified bank accounts in compliance with KYC and Income Tax Act provisions, he said' These directions reflect the regulator's focus on integrity, accountability, and customer rights. 'We are fully prepared to implement the new guidelines well ahead of the April 2026 deadline. We believe this framework will further bolster public trust in gold loans as a reliable and responsible source of credit,' he stated.
Business Standard
16 hours ago
- Business Standard
MCX receives SEBI approval to launch electricity derivatives
The Multi Commodity Exchange of India (MCX) has received approval from the Securities and Exchange Board of India (SEBI) to launch Electricity Derivatives, marking a significant milestone in the evolution of India's Energy trading landscape. This development underscores the strong commitment and support of the Regulators - SEBI and Central Electricity Regulatory Commission (CERC) - in enabling a dynamic and sustainable power market. The Electricity Derivatives Contracts to be introduced by MCX will enable generators, distribution companies, and large consumers to hedge against price volatility and manage price risks more effectively, by enhancing efficiency in the power market. This landmark move positions MCX as a torchbearer of innovation in commodity trading, while reinforcing India's ambition towards sustainable energy and capital market development. It also marks a pivotal step toward deepening India's energy markets and aligns with the broader vision of 'Viksit Bharat'.
Time of India
16 hours ago
- Time of India
Explained: How is Specialised Investment Fund different from mutual funds, PMS, and AIF
Tired of too many ads? Remove Ads What is a Specialised Investment Fund (SIF)? Mutual Funds (MFs) Tired of too many ads? Remove Ads Portfolio Management Services (PMS) Alternative Investment Funds (AIFs) Structure and Regulation Tired of too many ads? Remove Ads Investment Flexibility and Strategy Liquidity and Tenure Who can set up a SIF? With a wide range of investment options today, it's crucial to understand the key differences between vehicles like Specialised Investment Funds (SIFs), Alternative Investment Funds (AIFs), Portfolio Management Services PMS ), and mutual funds—each tailored to distinct investor needs, risk appetites, and return market regulator Sebi has introduced a Specialised Investment Fund (SIF) framework to bridge the gap between mutual funds (MFs) and portfolio management services (PMS), and it aims to provide sophisticated investors with more flexible investment opportunities while ensuring regulatory funds pool money from multiple investors to invest in stocks, bonds, or other securities. They are highly regulated, offer diversification, and are accessible to a wide range of investors, making them one of the most popular investment vehicles. MFs are suitable for those looking for lower risk and ease of offers customised portfolio management to wealthy investors, with a minimum ticket size of Rs 50 lakh. It provides personalised attention, allowing investors to tailor their portfolio based on risk appetite and goals. While providing more control than mutual funds, PMS often carries higher fees and are investment funds pooled privately and involve investments in real estate, hedge funds, private equity, etc. They are open to sophisticated investors with a minimum entry limit of Rs 1 crore. AIFs come in three categories—high-risk, moderate-risk, and lower-risk funds—and are less regulated compared to mutual mutual funds that pool investor money into diversified portfolios, or PMS that provides tailored portfolio management, SIF is a newly introduced investment avenue by the regulator, offering a unique structure and strategy for sophisticated funds in India are regulated by SEBI and follow strict norms regarding transparency, liquidity, diversification, and suitability for retail investors. PMS offers customised portfolio management to wealthy investors where portfolios are managed on behalf of individual clients with a minimum investment threshold currently Rs 50 are pooled investment vehicles for sophisticated investors and are categorised into three types—high-risk, moderate-risk, and lower-risk funds. They are meant for high-net-worth individuals (HNIs) and institutional investors looking to participate in less-regulated, high-risk minimum amount to be invested in an SIF will be Rs 10 lakh per investor. The fund house can offer a SIP and SWP but it must comply with the minimum threshold funds follow standardised asset allocation models and are limited to listed instruments in most cases. PMS offers more customisation, with fund managers directly managing portfolios tailored to the client's profile. AIFs allow flexibility in investing in unlisted securities, structured debt, and real estate, depending on the regulator allows SIFs to offer 3 categories of investment strategies: they are equity-oriented strategies, debt-oriented strategies, and the third is a hybrid category. The current framework allows only one strategy per category per funds provide high liquidity with daily NAVs and redemption options. PMS products are also relatively liquid, though with more constraints compared to mutual funds. AIFs, depending on the strategy, may have multi-year lock-ins and limited exit SIF can be open-ended, closed-ended, or interval-based. The redemption process may include a notice period of up to 15 working days, allowing fund managers to manage liquidity are two routes to establish an SIF. As per the first rule, a fund house must be in operation for a minimum of 3 years with an AAUM of Rs 10,000 crore in the preceding 3 years. The fund house must also have an additional fund manager and must have at least 3 years of experience managing AUM of Rs 500 crore.: Recommendations, suggestions, views, and opinions given by experts are their own. These do not represent the views of the Economic Times)
