Bank of India sells 18% Stake in Insurance JV to Dai-Ichi Life

State-run Bank of India sold an 18 per cent stake in the insurance joint venture Star Union Dai-ichi Life Insurance Company Ltd (SUD) to its Japanese partner. According to the lender’s filling , upon change in law, Bank of India sold its 18 per cent stake in Star Union Dai-ichi Life Insurance Company Ltd (SUD) to Dai-ichi Life Insurance Company Limited (DILIC). It further added that the shareholding of DILIC is going to be be 44 per cent up from 26 per cent upon execution of the transaction after getting required statutory/regulatory approvals.  Bank of India mentioned that the transaction was executed on September 26, 2016.

With this, the shareholding of Bank of India has gone down to 30 per cent from 48 per cent in SUD, whereas Union Bank of India will continue to hold 26 per cent. SUD was established in 2007 as a joint venture among Bank of India, Union Bank of India and DILIC to engage in life insurance business in India. According to the terms of the joint venture agreement, DILIC had an option to buy 18 per cent extra stake in SUD upon change in law associated to higher stake by foreign partners in their Indian joint ventures, permitting  them to imcrease their stake from the allowed 26 per cent to up to 49 per cent.

It also added that DILIC has since exercised the call option to obtain the said stake from Bank of India and increased shareholding of DILIC will be 44 per cent up from 26 per cent upon execution of the transaction after getting necessary regulatory approvals.

Bank of India share price is trading below 0.76% at Rs. 116.80, touching the day’s high and low Rs. 118.75 and Rs. 116.10 respectively.Bank of India is analyzed by Dynamic Levels as the top 500 performing stocks for the June quarter among the 1700 stocks which are listed on the NSE.  Bank of India is fundamentally strong and is safe for investment, as per Dynamic analysts

In order to know about the support and resistance levels of the scrip and also its fundamentals and financials, please a pay a visit to Bank of India share price history.