Federal Bank not ready for an exit from insurance JV: MD Shyam Srinivasan

Partners are currently in the process of calculating the value of IDBI Federal Life Insurance

Kerala-based Federal Bank on Wednesday said it was not planning to make an exit from IDBI Federal Life Insurance, its joint venture project with IDBI Bank and the European insurance firm Ageas.

Speaking on the issue, Federal Bank Managing Director & CEO Shyam Srinivasan said: "We are not looking at an exit."

At present, the partners are in the process of calculating the value of the JV firm that commenced operations back in 2008 and was able to breakeven within a period of five years of its launch. 

According to the existing JV agreement, the Indian partners may choose to dilute their stake, if their foreign partner wants to raise its holding. All other reports related to the matter are mere speculations, said Srinivasan.

At present, the insurance firm has a pan-India presence as it has access to a wide network of 2,964 branches offered by the IDBI and Federal Bank, besides having an equally sizeable network advisors and partners.

The company has issued nearly 10.29 lakh policies worth over Rs 58,653.76 crore until March-end in 2017. The net worth of the firm's assets under management (AUM) stands at Rs 6,090 crore and it also has a robust capital base of over Rs 800 crore as on March-end 2017, stated the comp