Allahabad Bank has a medium term target to sell its 30% holdings, in Universal Sompo General Insurance. This will be done with a view to sell non-core assets.

As per Usha Ananthasubramanian, Allahabad Bank’s chief executive, “We are not desperate at this point of time, but it is on the back of our mind and we may do it at the right time. If there is pressure on capital, I think that will be the time to consider it .”

Further she stated that, the insurance business is doing good and it may get listed after 2 years with improved valuations and that can be the best time to divest.

Ananthasubramanian also stated, “Sompo is very keen to raise its stake. When they bring in fresh capital, our holding will automatically come down, but we won’t like to go below 26% as of now.”

Read EquityPandit’s Technical Analysis of Indian Stock Market