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Federal Bank acquires 4% stake in Ageas Federal Life for ₹97.44 crore, raising its holding to 30%. Gross NPA ratio improved to 1.95% with net profit at ₹955.4 crore.
Federal Bank Ltd, a prominent private sector lender, has signed a binding memorandum of understanding (MoU) to acquire a 4% stake in Ageas Federal Life Insurance Company Limited (AFLIC) for ₹97.44 crore. The acquisition will increase Federal Bank’s stake in AFLIC from 26% to 30%. The deal involves purchasing 3.2 crore shares at ₹30.45 per share. The acquisition is subject to regulatory approvals from the Reserve Bank of India (RBI) and the Insurance Regulatory and Development Authority of India (IRDAI). The transaction is expected to be completed on or before October 31, 2025.
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Federal Bank to acquire 4% stake in AFLIC for ₹97.44 crore.
Acquisition will raise Federal Bank’s stake in AFLIC from 26% to 30%.
Purchase involves 3.2 crore shares at ₹30.45 per share.
Regulatory approvals from RBI and IRDAI are pending.
Federal Bank share price closed at ₹194.70, down by 0.51% on BSE.
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Ageas Federal Life Insurance Company Limited reported a net worth of ₹1,176 crore as of FY24, with assets under management (AUM) totalling ₹17,455 crore. The company also recorded a net profit of ₹107 crore in the same period, showcasing strong financial stability. The acquisition is expected to enhance Federal Bank’s presence in the insurance sector while consolidating its position as a significant stakeholder in AFLIC.
Financial Metrics | FY24 | FY23 | Change |
Net Worth | ₹1,176 Cr | ₹1,089 Cr | +8% |
Assets Under Management (AUM) | ₹17,455 Cr | ₹16,300 Cr | +7% |
Net Profit | ₹107 Cr | ₹99 Cr | +8% |
Federal Bank Share Price | ₹194.70 | - | -0.51% |
In the third quarter of FY24, Federal Bank’s net profit stood at ₹955.4 crore, marking a 5% decline from ₹1,006.7 crore in the previous year. Net interest income (NII) increased by 14.5% year-on-year to ₹2,431.3 crore, outperforming the CNBC-TV18 poll estimate of ₹2,415 crore.
The bank showed notable improvement in asset quality, with gross non-performing assets (NPA) declining to ₹4,553.3 crore from ₹4,884.5 crore in the previous quarter. The gross NPA ratio improved to 1.95% from 2.09%, while the net NPA ratio dropped to 0.49% from 0.57%. This reflects the bank’s strong risk management practices and steady financial performance.
Federal Bank share price ended at ₹194.70 on the BSE, recording a 0.51% dip. This marginal decline comes as the market reacts to the acquisition news, while the bank’s solid asset quality and consistent performance continue to instil investor confidence. In the long term, the acquisition could strengthen Federal Bank’s insurance business and positively impact the Federal Bank share price once approvals are secured.
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