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Central Bank of India is a major public sector bank in India, which was established in 1911. It is headquartered in Mumbai and is one of the oldest and largest banks in the country.
Central Bank of India has purchased a 24.91% stake in Future Janrali India Insurance Company Limited (FGIICL). The bank has also won 25.18% stake in Future Janrali India Life Insurance Company Limited (FGILICL). The deal is completed on 4 June.
The Central Bank bought this stake from Future Enterprises Limited (FEL), which is burdened with debt and is going through the insolvency process. The deal is part of the resolution plan approved by the Committee of Creditors (COC), in which FEL has been sold in insurance companies.
The financial difficulties of the group pushed Fel into the insolvency process. In this process, which started in 2022, it was decided to sell FEL insurance stake. In August 2024, the Central Bank bid to buy a stake in FEL’s insurance companies and became a successful bidder.
According to the information given to BSE ….
- The bank has bought 35,06,30,136 equity shares in FGIICL for Rs 451 crore.
- At the same time, 65,43,80,439 equity shares have been purchased in FGILICL for Rs 57 crore.
Understand this deal in three points
- This acquisition will take the Central Bank to the insurance sector, so that it will be able to sell banks as well as insurance products to its customers.
- This deal was necessary for the Future Group going through the insolvency process to deal with the debt. This will provide some financial relief to the Future Group.
- Insurance demand in India is increasing, and a large government bank like Central Bank will make the market more competitive.
The General Insurance Company of Future Group started in 2006
Future Janrali India Insurance Company i.e. FGIICL started in 2006. Its headquarters are in Mumbai and sells many types of general insurance products like vehicle, home, health.
- In the financial year 2024, it achieved a gross retin premium of Rs 4,910.89 crore.
- In the financial year 2023, it achieved a gross retin premium of Rs 4546.23 crore.
- In the financial year 2022, it achieved a gross retin premium of Rs 4210.35 crore.
Future Group’s Life Insurance Company started in 2006 itself
Future General India Life Insurance started in 2006. It offers products like term insurance, ULIP, retirement plan.
- In the financial year 2024, it achieved a gross retin premium of Rs 1,810.53 crore.
- In the financial year 2023, it achieved a gross retin premium of Rs 1758.01 crore.
- In the financial year 2022, it achieved a gross retin premium of Rs 1433.53 crore.
The company runs with the partnership of the Janrali Group of Italy
Both companies run with the partnership of Future Group and Italy’s Janrali Group. Janrali is still the largest shareholder with 74% in FGIICL and 73.99% in Fgilicl. This purchase of the Central Bank will give him a chance in insurance business.
The Central Bank of India has already received approval from the Competition Commission of India (CCI), the Reserve Bank of India (RBI) and the Insurance Regulatory and Development Authority of India (IRDAI).
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