The government sector IDBI Bank will soon be the Life Insurance Corporation of India (LIC). Board of Life Insurance Corporation of India has approved the proposal to buy 51 per cent stake in IDBI Bank. This was stated by Economic Affairs Secretary SC Garg. Garg is also on the LIC board. After the green signal has been given by Insurance Regulatory IrDA, LIC will now go to the market controller SEBI. Insurance regulator IRDA has already approved this acquisition. After approval from SEBI, the LIC will have access to the IDBI Bank's proprietary rights.Through the allotment of shares, the board of LIC has approved the insurance company to increase its stake by 51% in IDBI Bank. In order to raise the bank capital deposited in debt, the government will issue preferential shares to LIC.
At present, LIC has 7.98 per cent stake in IDBI Bank. Further, LIC will increase the stake in IDBI Bank to 51 per cent. The news is that the deal is expected to be completed by September. From this deal, LIC will get more than 2000 branches of IDBI Bank. LIC has more than 22 million policyholders, which will benefit from IDBI Bank. With this deal IDBI Bank will get financial support of Rs 10-13 thousand crore.
Bureau Report, APN
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