Allahabad Bank may consider divesting stake in general insurance venture

MUMBAI: State-run lender Allahabad Bank may look at divesting stake in Universal Sompo General Insurance Company. The banks board of directors will meet on December 4 to deliberate partial or complete stake sale in the general insurance venture.

Universal Sompo General Insurance Company is a joint venture between Allahabad Bank, Karnataka Bank, Indian Overseas Bank and Dabur Investments form the Indian participation with the foreign partner Sompo Japan Insurance. Allahabad Bank holds 30% in the insurer, with IOB and Karnataka Bank holding 19% and 15% respectively. Dabur has 10% stake and Sompo has 26% interest.

The finance ministry had earlier asked state-run banks to look at divesting their noncore assets in order to meet burgeoning capital requirements.

In a statement to exchanges the bank also informed that the Board of Directors will meet to consider floating Request for Proposal for appointment of consultant for advising and undertaking redrafting of existing Shareholders Agreement forming Insurance Joint Venture.