PSU insurance firms seek Rs 12,000-cr infusion as merger put on fast track

The financial condition of the three companies has, meanwhile, deteriorated and warrants capitalisation, if the merged entity is to be listed

Three public sector general insurance companies, slated to be merged, are expecting a Rs 12,000-crore fund infusion in this financial year (FY20).

The boards of the three insurance companies — National Insurance Company, Oriental Insurance Company, and United India Insurance Company — formally gave the nod for their merger last week, putting the much-delayed merger process on the fast track.

“Several months ago, the Department of Financial Services (DFS) had recommended the fund infusion of Rs 12,000 crore. We hope it will come soon. The final call will be taken at the highest level,” said a senior official of one of the