LIC approves to acquire 51% stakes in IDBI Bank

idbi bank stakes

The board of Life Insurance Corporation on Monday approves to invest more than Rs.12000 Crores for 51% stakes in IDBI Bank Ltd to become the largest shareholder of the bank.

LIC has been looking to take step in the banking world by acquiring a majority stake in IDBI Bank.

The main idea of this deal is to make investments into the bank and provide business synergy despite the lender’s stressed balance sheet. The insurance giant will get about 2,000 branches through which it can sell its products. Apart from this, the bank will also get accounts of around 22 crores policyholders that will provide successive flow of fund.

IRDAI (Insurance Regulatory and Development Authority) approved the proposal of LIC to increase its stakes from 10.82% to 51% in IDBI bank, last month, at a meeting held in Hyderabad.

The net loss of the bank for the March quarter extended to Rs. 5,662.76 crore on weakening quality and a rise in provisions and during the quarter, provisions of lender for non-performing asset rose to 77.9% worth Rs.10,773.30 Crores this year.

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