IDBI Bank has entered into a share purchase agreement with Ageas Insurance International, wherein the bank is looking to sell its remaining stake of 25 per cent in private sector life insurer Ageas Federal Life Insurance for Rs 580 crore, making Ageas one of the few foreign insurers to raise its stake in its Indian insurance joint venture to 74 per cent, after the government raised the FDI cap in the insurance sector.

“In continuation of the bank’s disclosure dated March 29, 2022, we hereby inform you that IDBI Bank has entered a share purchase agreement (SPA) with Ageas Insurance International NV (Buyer) on May 19, 2022, to sell IDBI Bank’s entire stake of 200,000,000 equity shares in Ageas Federal Life Insurance company under the exercise of the call option by Ageas. The transaction will be concluded subject to regulatory approvals,” the bank said in a notification to the exchanges.

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The transaction is expected to be completed in Q2FY23, subject to regulatory approvals and satisfaction of the terms and conditions set out in the share purchase agreement.

Earlier, A European insurer, Ageas had increased its stake in the Indian insurer to 49 per cent from 26 per cent in December 2020. Federal Bank’s stake continued to be at 26 per cent. Following this, the insurer’s name changed to Ageas Federal Life Insurance from IDBI Federal Life Insurance.