Insta
LIC Board Okays Acquisition Of Upto 51 Per Cent Stake In IDBI Bank
LIC building at Janpath in New Delhi. (Priyanka Parashar/Mint via GettyImages)
Life Insurance Corporation (LIC) board granted its approval for acquiring up to 51 per cent stake in IDBI bank, the New Indian Express has reported.
Earlier, Insurance Regulatory and Development Authority of India (IRDAI) had approved the acquisition plan proposed by the state-owned insurance company. The LIC had to seek the IRDAI’s approval as insurance companies cannot own more than 15 per cent in a listed firm. Next, the company will have to approach Securities Exchange Board of India (SEBI) for further approvals.
IDBI was the first lender to be put on to prompt corrective action (PCA) list. The bank’s Non Performing Assets (NPA) touched to Rs 55,600 crore at the end of the fourth quarter, with the bad loans ratio touching 27.95 per cent.
LIC's acquisition will infuse some capital to the debt ridden bank. It is estimated that it may help the bank to get Rs 10,000 crore to Rs 13,000 crore as capital. With the acquisition, LIC will get close to 2,000 more branches and the bank will benefit from the capital infusion, as well as get accounts of 22 crore policy holders.
The opposition parties have been critical of LIC acquiring debt ridden IDBI bank.
Support Swarajya's 50 Ground Reports Project & Sponsor A Story
Every general election Swarajya does a 50 ground reports project.
Aimed only at serious readers and those who appreciate the nuances of political undercurrents, the project provides a sense of India's electoral landscape. As you know, these reports are produced after considerable investment of travel, time and effort on the ground.
This time too we've kicked off the project in style and have covered over 30 constituencies already. If you're someone who appreciates such work and have enjoyed our coverage please consider sponsoring a ground report for just Rs 2999 to Rs 19,999 - it goes a long way in helping us produce more quality reportage.
You can also back this project by becoming a subscriber for as little as Rs 999 - so do click on this links and choose a plan that suits you and back us.
Click below to contribute.
Latest
