Mumbai, April 1

Union Bank of India (UBI) has sold 21 per cent stake in IndiaFirst Life Insurance Company Ltd (IFLIC) to Bank of Baroda (BoB) for ₹766.29 crore.

IFLIC is a joint venture between BoB, UBI and Carmel Point Investments India Pvt Ltd.

UBI has transferred about 13.93 crore equity shares of IFLIC to BoB at ₹55 per share.

The process of stake sale was completed on March 31, 2022, UBI said in a regulatory filing. This sale is expected to boost UBI’s fourth quarter (FY22) bottomline.

UBI held 30 per cent stake in IFLIC by virtue of its acquisition of Andhra Bank.

“This divestment is in terms of the directives of IRDAI to bring down the bank’s stake in IFLIC below 10 per cent,” the filing said.

UBI also has 25.10 per cent stake in Star Union Dai-Ichi (SUD) Life Insurance Company Ltd.

With the said divestment, the shareholding of UBI in IFLIC stands at 9 per cent. BoB and Carmel Point Investments India now have 65 per cent and 25 per cent stake, respectively, in IFLIC.

Beside UBI, the other shareholders of SUD Life are Bank of India (28.96 per cent stake) and Dai-ichi Life Insurance Company (45.94 per cent).