BAJAJ BROKING

Notification
No new Notification messages
Retaggio Industries IPO is Open!
Apply for the Retaggio Industries IPO through UPI in just minutes.
Open a Free Demat Account
Pay ZERO maintenance charges for the first year, get free stock picks daily, and more.
Trade Now, Pay Later with up to 4x
Never miss a good trading opportunity due to low funds with our MTF feature.
Track Market Movers Instantly
Stay updated with real-time data. Get insights at your fingertips.

Federal Bank Acquires 4% Stake in Ageas Federal Life for ₹97.44 Crore

Synopsis:

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.

Also read: ONGC Invests ₹3,300 Crore in ONGC Green to Acquire Ayana Renewable Power

FEDERAL BANK LTD

Trade

192.73-4.85 (-2.45 %)

Updated - 28 March 2025
198.50day high
DAY HIGH
191.72day low
DAY LOW
7248212
VOLUME (BSE)

Key Takeaways

  1. Federal Bank to acquire 4% stake in AFLIC for ₹97.44 crore.

  2. Acquisition will raise Federal Bank’s stake in AFLIC from 26% to 30%.

  3. Purchase involves 3.2 crore shares at ₹30.45 per share.

  4. Regulatory approvals from RBI and IRDAI are pending.

  5. Federal Bank share price closed at ₹194.70, down by 0.51% on BSE.

Also read: IREDA Raises ₹910.37 Crore via Tier-II Bonds at 7.74% for 10 Years

Financial Performance of AFLIC

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%

Federal Bank's Financial Highlights

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.

Also read: Maruti Suzuki Faces ₹2,966 Crore Tax Addition in FY 2021-22

Do you have a trading account app or demat account app?

You can open an account with Bajaj Broking in minutes.

Download the Bajaj Broking app now from Play Store or App Store.

Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.

This content is for educational purposes only. Securities quoted are exemplary and not recommendatory.

For All Disclaimers Click Here: https://www.bajajbroking.in/disclaimer

Share this article: 

Read More Blogs

Our Secure Trading Platforms

Level up your stock market experience: Download the Bajaj Broking App for effortless investing and trading

Bajaj Broking App Download

9 lakh+ Users

icon-with-text

4.3+ App Rating

icon-with-text

4 Languages

icon-with-text

₹4300+ Cr MTF Book

icon-with-text