ageas SA/NV (ENXTBR:AGS) increasing its stake in Ageas Federal Life Insurance Company Ltd. has ended a period of instability in the joint venture and has positively impacted the morale of the employees, said Vighnesh Shahane, Managing Director and Chief Executive Officer, Ageas Federal Life Insurance to BusinessLine. While there is a likelihood that Ageas could further increase its stake to 74% in the private sector life insurer, the Federal Bank’s proposal to increase stake to 30% has, however, been discouraged by the Reserve Bank of India (RBI). “If Ageas does step up to 74% –there is a very positive intent to do so and they are just awaiting certain amendments to the Act – then I think there is a very strong likelihood that they would buy out the IDBI Bank stake,” Shahane said. “In the case of Federal Bank, it wanted to step up its stake to 30% but the RBI has discouraged banks from increasing stake and wants to focus more on their core activities and preserving capital, especially at this time,” he further said. The Federal Bank did not comment on an email query by BusinessLine on the status of its proposal to the RBI to increase its stake. “We have been doing well and the immediate strategy is to continue doing the things we do well and also fix our distribution,” he said.