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Business EconomyPosted at: Jan 21 2019 8:01PM


LIC acquires 51 pc stakes in IDBI, gets its own bank

New Delhi, Jan 21 (UNI) State-owned Life Insurance Corporation on Monday got its own bank as it acquired 51 per cent stakes in public sector bank IDBI.
The current MD and CEO of the IDBI bank would continue till the LIC appoint a new head in the Board of the financially deprived Bank.
With this deal, the Corporation has become the majority shareholder in the bank, the IDBI said in a statement here.
The Government in June 2018 had decided that the LIC would acquire the controlling stake of the bank saying it will improve the financial health of both the companies.
The Bank said, "The transaction promises a paradigm shift for both partners, creating for the first time a unique financial conglomerate in India....With this deal, LIC will have a strategic investment in a large bancassurance channel, thereby, increasing its productivity and reducing distribution costs."
The IDBI said this deal would help the bank in improving its financial health and will pave the way for the bank to exit from the Reserve Bank of India's PCA in a time-bound manner.
Now, the Corporation has also become a bank and can sell its products through the bank.
Presently, the IDBI Bank has 1.5 crore customers and about 18,000 employees. There are 1800 branches of the bank through which LIC can now made touch points for selling LIC policies. More than 900 branches of the bank have also been proposed to be enabled for settlement payments via National Electronic Funds Transfer (NEFT).
The Bank will also get access to more than 1 lakh employees and 11 lakh agents of LIC. In addition, LIC employees and agents will get access to preferential and value-added banking services.
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Tags: #LIC acquires 51 pc stakes in IDBI# gets its own bank
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