Development News Edition
Give Feedback

LIC and IDBI deal sanctioned by Cabinet

As per the proposal, the debt-laden bank will issue preferential shares to Life Insurance Corporation (LIC) to raise capital.


PTI Last Updated at 01 Aug 2018, 15:08 IST India

The Cabinet today cleared the purchase of 51 percent controlling stake in IDBI Bank by state-run insurer Life Insurance Corporation (LIC), sources said.

As per the proposal, the debt-laden bank will issue preferential shares to Life Insurance Corporation (LIC) to raise capital.

The LIC-IDBI deal has been approved, a source said after the meeting of Union Cabinet, chaired by Prime Minister Narendra Modi.

LIC already has 7-7.5 percent stake in the bank and will acquire the remaining for majority holding.

Although the proposed acquisition by LIC would not bring any money to the government, the bank would get capital support between Rs 10,000 crore and Rs 13,000 crore, depending on the share price of the bank.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)


add banner

LEAVE COMMENT

Download our Android App on Google Play