The government is
planning to merge three public sector general insurance companies, which are
also expecting a Rs 12,000-crore fund infusion in the 2019-20 fiscal. Boards of
three insurance companies — National Insurance Company, Oriental Insurance
Company and United India Insurance Company — have formally given the go ahead
for their merger last week. This has put 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. The financial condition of the three companies has, meanwhile,
deteriorated and warrants capitalisation, if the merged entity is to be listed.
Merger of three general insurance PSUs soon
By IndianMandarins - 2020-01-28 10:17:00
The government is planning to merge three public sector general insurance companies, which are also expecting a Rs 12,000-crore fund infusion in the 2019-20 fiscal. Boards of three insurance companies — National Insurance Company, Oriental Insurance Company and United India Insurance Company — have formally given the go ahead for their merger last week. This has put 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. The financial condition of the three companies has, meanwhile, deteriorated and warrants capitalisation, if the merged entity is to be listed.
