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