Tuesday, 22 January 2019

LIC's 51% stake in IDBI Bank, acquisition deal completed

LIC's 51% stake in IDBI Bank, acquisition deal completed

LIC's 51% stake in IDBI Bank, acquisition deal completed
IDBI Bank had a net loss of Rs 3,602.49 crore in the September quarter of the current financial year.



Public Life Insurance Corporation of India (LIC) has completed the acquisition deal of 51% stake in IDBI Bank, which is undergoing a financial crisis. After this, LIC has become the largest shareholder in the bank..



IDBI Bank gave information in the BSE filing, "This deal is good for both IDBI Bank and LIC, through this, new opportunities will be created for shareholders, customers and employees of both the units through mutual cooperation." In August last year, the Cabinet approved the acquisition of control stake in Life Insurance Corporation (LIC) as a promoter in the bank through a combination of preferential allocation and open offer of equity..



LIC has plans to enter the banking sector by buying a majority stake in IDBI Bank. Although the business of IDBI Bank is under pressure, this deal is expected to get business support from both the units...


For the information, please tell you that IDBI Bank had a net loss of Rs 3,602.49 crore in the September quarter of the current financial year. At the same time, the gross NPA of the bank stood at 31.78 percent (Rs 60,875.49 crore), which was 24.98 percent in the September quarter of the previous fiscal year...


Significantly, IDBI Bank has around 1.5 crore retailers and 18,000 employees are working under it. 800 branches of IDBI Bank will now be used as a touch point for the sale of LIC policy.

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