Private equity investor Warburg Pincus, which already owns a 26 percent stake in IndiaFirst Life Insurance, is looking to buy another 20.5 percent stake in the insurer from Andhra Bank, reported The Economic Times.

“Warburg Pincus is in talks to buy a 20.5 percent stake in IndiaFirst Life Insurance from Andhra Bank… Andhra Bank is looking to sell partially its stake in the company,” a source was quoted as saying in the report. The deal, if finalized, will help Andhra Bank earn up to Rs 700 crore, said sources who were quoted in the report.

The development, according to the report, could be seen as the direct impact of the recently-announced mega-mergers of 10 state-run banks into four. Currently, state-run lenders Bank of Baroda owns 44 percent and Andhra Bank 30 percent in the life insurer.

Carmel Point Investments India, a Mauritius-based company owned by private equity funds that Warburg Pincus LLC manages, bought 26 percent stake in IndiaFirst for Rs 710 crore in February, valuing the company at Rs 2,800 crore, said the report.