Bank of India to sell 18% stake in life insurance joint venture to Dai-ichi

MUMBAI: State-run Bank of India today said it is looking at selling 18 per cent stake in the three-way life insurance arm, Star-Union Dai-ichi Life Insurance, to the Japanese partner to bring down its share to 30 per cent.

Star Union Dai-ichi Life is a joint venture between Bank of India (48 per cent), Union Bank of India (26 per cent) and Japanese life insurer Dai-ichi Life (26 per cent).

"We will bring down our stake from 48 per cent to 30 per cent. The valuation process is in progress," Bank of India chairperson and managing director Vijaylaxmi Iyer told reporters here today after announcing a Rs 56 crore net loss in the March quarter against a net profit of Rs 558 crore a year ago.

She said Dai-ichi which has 26 per cent stake will increase it to 49 per cent, while Union Bank will retain its stake at 26 per cent.

Iyer, however, did not give any timeline by when the process will get over.

Meanwhile, Edelweiss Tokio Life Insurance today also said its foreign partner Tokio Marine will hike stake in the joint venture to 49 per cent.

The company has filed an application with the Foreign Investment Promotion Board for hiking stake of the foreign partner from 26 per cent to 49 per cent.