IDBI Bank appoints LIC as agent, forms joint group to identify synergies
Business | March 11, 2019 7:35 ISTThe deal is expected to provide business synergies to it despite the lender's stressed balance sheet and high NPA.
|
|
|
|
The deal is expected to provide business synergies to it despite the lender's stressed balance sheet and high NPA.
He clarified that the insurance giant has been given the approval to acquire 51 per cent stake on the condition of bringing it down to below 15 per cent over a period of time but the timeline would depend on the business plan of LIC for the troubled lender.
In comparison, Gandhi alleged that in 2018, Prime Minister Modi is trying to give a bailout of Rs 91,000 crore to debt-ridden IL&FS through public money in the LIC and the State Bank of India.
IDBI Bank further said its board will meet on October 4 to "consider the preferential allotment of equity shares to LIC aggregating up to 51 per cent..."
In a letter to its employees, IL&FS had claimed that if funds worth Rs 16,000 crore stuck with concession authorities were released on time, it would not have landed in this mess.
The board of directors have approved the proposal for seeking shareholders' approval through postal ballot for the preferential issue of equity capital to Life Insurance Corporation of India (LIC) aggregating up to 14.90 per cent of the bank's post issue paid up capital, IDBI Bank said in a filing to stock exchanges.
Earlier this month, the Union Cabinet had approved LIC's proposed acquisition of up to 51 per cent stake in debt-ridden IDBI Bank.
Interested candidates can visit lichousing.com for all the details regarding the recruitment. An application fee of Rs 500 is applicable.
LIC already has 7-7.5 per cent stake in the bank and will acquire the remaining for majority holding.
Two police personnel held for murder of LIC agent in Delhi
According to a BSE filing, the lender received LIC's proposal to acquire the controlling stake, as a "promoter through preferential allotment of shares or open offer" on Monday.
Insurance regulator IRDAI has already given its approval to the insurer for the stake purchase.
Sources added that if the deal goes through, the IDBI Bank would get a capital support of Rs 10,000-Rs 13,000 crore.
If the LIC becomes a major stakeholder in IDBI Bank, it could be beneficial for both state-owned financial players in the long run.
The media reports also said the government had sought the views of insurance regulator IRDAI and markets watchdog Sebi on the move. IRDAI does not allow LIC or any other insurer to own more than 15 per cent in any company.
In its letter, marked also to Health Minister Satyender Jain, the doctors' body said that the government should wait for the report of the Delhi Medical Council (DMC) on the issue which is expected in a few days.
The DMA added that the government should have waited for the report of Delhi Medical Council (DMC) which would be submitted in a few days.
Life Insurance Corporation of India (LIC) on Tuesday announced the launch of a cancer cover as a health insurance policy with sum assured ranging from Rs 10 lakh to Rs 50 lakh.
Eight clubs - Aizawl FC, Mohun Bagan, East Bengal, Bengaluru FC, Shillong Lajong FC, Churchill Brothers, Chennai City FC and Minerva Punjab FC - applied for the AFC and National Licenses for the season 2017-18.
Live Scorecard
Top News
Latest News
