Allahabad Bank, IOB's Stake Sale in Universal Sompo General Insurance Gains Some Momentum

Allahabad Bank’s and Indian Overseas Bank’s stake sale plan in Universal Sompo General Insurance Company has now gathered pace with the leaders hiring a consultant for the valuation exercise.  Universal Sompo General Insurance Company is now focused on working on a future business plan as a pre-requisite for valuation.  The Chairman of the general insurance company, O. N. Singh said, “We are in the process of finalizing business and growth plans for the next 5 years and beyond.”

Allahabad Bank and Indian Overseas Bank both are looking to monetize non-core assets by selling their holdings in the joint venture under RBI’s prompt corrective action framework for nursing back to health. A person with close understanding of the matter said, “The banks may exit fully or partially depending on the valuation and also after taking their capital requirement under consideration”.  

The government has been insisting the lenders to exit their non-core business, especially to those with weak financials and those facing challenges in raising capital.