IDBI Bank announced it will sell its stake in the insurance joint venture IDBI Federal Life Insurance Co. The bank said in an announcement JP Morgan India has been mandated for advising and managing a strategic review process for IDBI Federal Life Insurance Co, which may result in, inter alia, potential divestment of all or part of the stake held by IDBI Bank in IDBI Federal Life Insurance Company. While IDBI Bank owns 48% of the insurance company, Federal Bank and Ageas Insurance International own 26% each. IDBI Bank’s exit from the insurance joint venture became necessary after state-owned Life Insurance Corporation of India took a 51% stake in it in January and the bank started using its network to sell LIC products. The bank is also looking to sell its mutual funds business.
