Allahabad Bank puts stake sale at Universal Sompo on the back-burner

At present, Allahabad Bank holds 28.52 per cent, while IOB holds 18.06 per cent stake in the company

Ahead of its impending merger with the Indian bank, Allahabad Bank has decided to put the stake sale process at Universal Sompo General Insurance on hold. 

Universal Sompo General Insurance Company is a joint venture (JV) between public sector banks, Allahabad Bank and Indian Overseas Bank (IOB), along with Karnataka Bank, Dabur Investment Corporation, and Sompo Japan Nipponkoa Insurance (a wholly owned subsidiary of Japan’s Sompo Holdings). 

According to a top official of Allahabad Bank, as of now, the stake sale is on hold. Recently, the bank also undertook a fresh valuation exercise of Universal Sompo. 

Allahabad Bank was actively