New Delhi: Allahabad Bank on Friday said its board has approved the appointment of consultant to advise on selling stake, partially or completely, in insurance joint venture firm Universal Sompo General Insurance (USGI).
In a meeting on Friday, the Board of Directors of the bank approved the appointment of consultant for advising on partial/complete disinvestment of Allahabad Bank's stake in USGI, the public lender said in a regulatory filing.
Also, the consultant will help redrafting existing shareholders' agreement in USGI so as to align it with the amended Indian Insurance Laws, it added.
On November 30, the Bank had said that it might partially or completely divest its stake in the insurance joint venture.
USGI is a public-private venture with Allahabad Bank holding 30 per cent stake along with Indian Overseas Bank owning 19 per cent, Karnataka Bank 15 per cent, Dabur 10 per cent and Sompo Japan Nipponkoa Insurance Inc 26 per cent.
The government earlier in July allowed foreign investors to increase their stake in the Indian insurance JV to 49 per cent from the earlier 26 per cent.
The hike in foreign investment limit into the insurance sector is expected to attract long term capital, besides improving an overall investment climate.
Recently, many foreign stake holders have increased their stakes in the joint entities in India.
Canada's Sun Life Assurance Company Ltd (Sun Life), French insurance giant Axa, UK's Standard Life and Japan's Nippon have announced raising their shareholdings in the respective JVs in India.
Shares of Allahabad Bank closed at Rs 73.30 apiece, down 2.07 per cent on the BSE.
New Delhi: Allahabad Bank on Friday said its board has approved the appointment of consultant to advise on selling stake, partially or completely, in insurance joint venture firm Universal Sompo General Insurance (USGI).
In a meeting on Friday, the Board of Directors of the bank approved the appointment of consultant for advising on partial/complete disinvestment of Allahabad Bank's stake in USGI, the public lender said in a regulatory filing.
Also, the consultant will help redrafting existing shareholders' agreement in USGI so as to align it with the amended Indian Insurance Laws, it added.
On November 30, the Bank had said that it might partially or completely divest its stake in the insurance joint venture.
USGI is a public-private venture with Allahabad Bank holding 30 per cent stake along with Indian Overseas Bank owning 19 per cent, Karnataka Bank 15 per cent, Dabur 10 per cent and Sompo Japan Nipponkoa Insurance Inc 26 per cent.
The government earlier in July allowed foreign investors to increase their stake in the Indian insurance JV to 49 per cent from the earlier 26 per cent.
The hike in foreign investment limit into the insurance sector is expected to attract long term capital, besides improving an overall investment climate.
Recently, many foreign stake holders have increased their stakes in the joint entities in India.
Canada's Sun Life Assurance Company Ltd (Sun Life), French insurance giant Axa, UK's Standard Life and Japan's Nippon have announced raising their shareholdings in the respective JVs in India.
Shares of Allahabad Bank closed at Rs 73.30 apiece, down 2.07 per cent on the BSE.
New Delhi: Allahabad Bank on Friday said its board has approved the appointment of consultant to advise on selling stake, partially or completely, in insurance joint venture firm Universal Sompo General Insurance (USGI).
In a meeting on Friday, the Board of Directors of the bank approved the appointment of consultant for advising on partial/complete disinvestment of Allahabad Bank's stake in USGI, the public lender said in a regulatory filing.
Also, the consultant will help redrafting existing shareholders' agreement in USGI so as to align it with the amended Indian Insurance Laws, it added.
On November 30, the Bank had said that it might partially or completely divest its stake in the insurance joint venture.
USGI is a public-private venture with Allahabad Bank holding 30 per cent stake along with Indian Overseas Bank owning 19 per cent, Karnataka Bank 15 per cent, Dabur 10 per cent and Sompo Japan Nipponkoa Insurance Inc 26 per cent.
The government earlier in July allowed foreign investors to increase their stake in the Indian insurance JV to 49 per cent from the earlier 26 per cent.
The hike in foreign investment limit into the insurance sector is expected to attract long term capital, besides improving an overall investment climate.
Recently, many foreign stake holders have increased their stakes in the joint entities in India.
Canada's Sun Life Assurance Company Ltd (Sun Life), French insurance giant Axa, UK's Standard Life and Japan's Nippon have announced raising their shareholdings in the respective JVs in India.
Shares of Allahabad Bank closed at Rs 73.30 apiece, down 2.07 per cent on the BSE.
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