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IDBI, Fortis to enter life insurance business

IDBI, Fortis to enter life insurance business
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First Published: Wed, Mar 21 2007. 06 11 PM IST
Updated: Wed, Mar 21 2007. 06 11 PM IST
PTI
New Delhi: IDBI Fortis, a joint venture of IDBI with Holland-based Fortis Insurance International in life insurance sector, will begin operations from June this year.
“It is at regulatory approval stage with the Insurance Regulatory and Development Authority (IRDA) and hopefully by June this year insurance venture would start business,” IDBI Bank Deputy Managing Director O V Bundellu said.
IDBI would have the majority stake of 48% in the JV, he said, adding to start with the paid up capital of the insurance business would be Rs150 crore.
Kerala-based Federal Bank and Fortis would have 26% stake each in the insurance company called ‘IDBI Fortis’, he said.
If and when government increases FDI limit to 49%, Fortis would increase its stake in the venture and the domestic partners would decrease their holding, he added.
On hiving off its gilt business from IDBI Capital, Bundellu said, Reserve Bank has cleared the proposal and it would start operation 1 April this year.
IDBI would be making initial investment of Rs50 crore in IDBI Gilt, the wholly-owned subsidiary, he said, adding the investment would reach Rs100 crore in next three-six months.
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First Published: Wed, Mar 21 2007. 06 11 PM IST
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