INSUBCONTINENT EXCLUSIVE:
NEW DELHI: IRDAI on Friday approved LIC’s plan to buy 51 per cent stake in IDBI Bank, as the insurance regulator gave the insurer
exemption from 15 per cent investment cap
The Life Insurance Corporation of India is expected to invest Rs 10,000-13,000 crore in tranches in the NPA-mired state-run lender, ETNow
quoted sources.
The insurer will pare its stake in the bank to 15 per cent in 5-7 years, sources added
The valuation will be decided as per Sebi regulations.
Post the deal, the government's stake in the bank will fall below 51 per cent
Shares of IDBI Bank today surged over 10 per cent amid reports that LIC may acquire majority stake in the company
The IDBI Bank stock zoomed 10.02 per cent to settle at Rs 54.90 on the BSE
The company's market valuation surged Rs 7,566.73 crore to Rs 22,954.73 crore
The government currently holds 80.96 per cent stake in the bank and the deal may involve both real estate and non-core entities of IDBI
Bank valued at around Rs 14,000 crore
LIC has a 10.82 per cent stake in the state-run lender, said to an ET report.
However, in a clarification to the exchanges, IDBI Bank on
Friday said no discussion had taken place with regard to capital injection of Rs 13,000 crore in the bank by insurance major LIC, PTI
reported.
Clarifying on the matter, the bank said, "Please refer to your mail dated June 29, 2018, regarding news clarification 'LIC plans
Rs 13000 crore capital injection in IDBI Bank
It is hereby informed that no such discussion has taken place in the board of the IDBI Bank."
IDBI Bank had posted a loss of Rs 5,662.76
crore for the quarter ended March 31
It had posted a net loss of Rs 3,199.77 crore in the corresponding quarter last year
Percentage of net NPA jumped to 16.69 per cent against 16.02 per cent on a quarter-on-quarter basis
It was at 13.21 in Q4FY17
Amount of gross non-performing assets jumped to Rs 55,588.26 crore against Rs 44,752.59 crore on year-on-year basis.
