LIC board gives nod to acquisition of up to 51% stake in IDBI Bank
LIC board gives nod to acquisition of up to 51% stake in IDBI Bank
EAS said, that LIC's board approved to acquire 51% stake in IDBI Bank.He is on board of LIC,said additional stake buy would be through a preferential shares issue,to have funds transaction to IDBI Bank.IRDAI,insurance regulator,gave approval to insurer for stake purchase.LIC will write to Sebi & may make an open offer if needed.Till June end, LIC owned 8% of IDBI Bank,86% were owned by federal government.This will help IDBI Bank to have Rs. 100 billion capital,to improve its debt status.By having majority share in IDBI, LIC may enter banking business.
Economic Affairs Secretary(EAS) told reporters on Jul'16, that Life Insurance Corporation of India's (LIC's) board gave approval to acquire up to 51% stake in IDBI Bank. He is on the board of LIC, said the additional stake buy would be most likely through a preferential shares issue, to have funds transaction to IDBI Bank.
IRDAI, the insurance regulator, has given its approval to the insurer for the stake purchase. LIC will write to Sebi (markets regulator). LIC may make an open offer if need be.
Till June end, LIC owned nearly 8% of IDBI Bank. 86% were owned by the federal government. This will help IDBI Bank to get more than Rs. 100 billion capital, to improve its debt status. By having majority share in IDBI, LIC's plan may get in banking business.
LIC will have 2,000 branches of IDBI to sell its products, and IDBI will get large funds of LIC. In addition IDBI will have 22 crore policyholders and so better fund flow to combat high bad loans and gross non-performing assets (NPA) of Rs 556 billion at the end of the March quarter, to have better prospects. Ref. : https://www.business-standard.com/article/finance/lic-board-gives-nod-for-idbi-bank-stake-buy-open-offer-may-not-be-needed-118071600433_1.html --- Dated: Jul'16,2018.
