Federal Bank has signed a binding memorandum of understanding (MoU) to acquire an additional 4% equity stake in Ageas Federal Life Insurance Company Limited (AFLIC) for ₹97.44 crore. The acquisition will increase the bank’s total shareholding in AFLIC from 26% to 30%.
As of 12:26 pm on March 26, Federal Bank share price was trading at ₹192.99, down 0.95% for the day, but up 7.99% over the past month and 28.83% over the past year.
The transaction involves the purchase of 3.2 crore equity shares from Ageas Insurance International NV at ₹30.45 per share. It is a cash consideration deal and is subject to regulatory approvals from the Reserve Bank of India (RBI) and the Insurance Regulatory and Development Authority of India (IRDAI).
The acquisition is to be completed on or before October 31, 2025.
AFLIC, a joint venture between Federal Bank and Ageas, reported the following figures for FY24:
In the last three financial years, AFLIC’s gross written premium stood at ₹2,207 crore in FY22, ₹2,289 crore in FY23, and ₹2,697 crore in FY24.
For the third quarter of FY25, Federal Bank posted a net profit of ₹955.4 crore, compared to ₹1,006.7 crore in the same quarter last year, a decline of 5% year-on-year. However, net interest income (NII) increased by 14.5% year-on-year to ₹2,431.3 crore.
On the asset quality front:
The acquisition of the additional 4% stake is part of Federal Bank’s ongoing involvement in the insurance joint venture. The completion of the transaction remains subject to regulatory clearances and further agreements.
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Published on: Mar 26, 2025, 2:30 PM IST
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