LIC board gives nod to acquisition of 51 pc stake of IDBI
Mumbai, July 16 (IBNS): The board of Life Insurance of India (LIC) on Monday approved the acquisition of 51 per cent stake in IDBI Bank, Economic Affairs Secretary Subhash Chandra Garg said.
This makes the state-owned LIC the largest shareholder of the bank.
Earlier, LIC had received a special permission from the Insurance Regulatory and Development Authority of India (IRDA) to pick up an additional 43 per cent stake in IDBI.
Now LIC will approach markets regulator SEBI.
LIC’s stake buy will help the debt-ridden state-owned bank get a capital support of Rs. 10,000- 13,000 crore.
LIC has been looking to enter the banking space by acquiring a majority stake in IDBI Bank as the deal is expected to provide business synergies despite the lender’s stressed balance sheet.
It will get about 2,000 branches through which it can sell its products, while the bank would get massive funds of LIC.