Shares of Central Bank of India surged over 3% on Monday after the bank announced that it received approval from the Reserve Bank of India (RBI) to enter the insurance business in collaboration with Generali Group. The joint venture will operate under FGIICL and FGILICL.
As of 9:23 am the shares were trading 3.12% higher at ₹53.95 on NSE.
In a filing to the stock exchanges, the state-owned bank disclosed that the RBI granted its approval through a letter dated November 21, 2024. The bank’s foray into the insurance business is contingent upon compliance with the conditions stipulated by the RBI and subsequent approval from the Insurance Regulatory and Development Authority of India (IRDAI).
The development has been positively received by investors, as the bank’s diversification into the insurance sector is expected to enhance its revenue streams and overall growth trajectory.
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