New Delhi: Union Bank of India plans to reduce stake in IndiaFirst Life Insurance to less than 10 percent. A senior officer has given this information. Union Bank of India has got a 30 percent stake in India First Life Insurance due to the large scale merger of banks by the government.
Union Bank got this stake due to the merger of Andhra Bank. The merger became effective from April 1. As per the guidelines of the Insurance Regulatory and Development Authority of India (IRDA), a promoter cannot hold more than 10 percent stake in two insurance undertakings simultaneously. Union Bank holds a 25.10 percent stake in Star Union Dai-ichi Life Insurance.
Other partners in this joint venture are Bank of India and Dai-ichi Life Holdings of Japan. Union Bank of India Managing Director (MD) and Chief Executive Officer (CEO) Rajkiran Rai Ji said, “We will continue the process initiated by the erstwhile Andhra Bank to bring the stake below 10 per cent”. Andhra Bank started the stake sale process last year.
