Irdai in talks with insurance firms hit by govt's mega PSB merger drive

The mergers have created a problem as many of these banks are promoters of insurance companies

The Insurance Regulatory and Development Authority of India (Irdai) has started informal consultations with insurance companies whose shareholding structure is in a fix after the merger of 10 public sector banks into four, said a source aware of the development.

The insurance regulation doesn’t allow an entity to promote more than one insurance company. The mergers, however, have created a problem as many of these banks are promoters of insurance firms.

According to the government’s merger plan, Union Bank will absorb Andhra Bank and Corporation Bank. Now, Union Bank has a 25.10 per cent stake in Star Union Dai-Chi Life Insurance, while