NEW DELHI: Insurance regulator Irdai on Friday accepted LIC to pick out as much as 51 according to cent stake within the debt ridden IDBI Bank, sources stated.
The decision, they stated used to be taken at a the assembly of the Board of Directors of Insurance Regulatory and Development Authority of India (Irdai) at Hyderabad this afternoon.
LIC these days grasp 11 according to cent stake within the financial institution.
Sources added that if deal is going via, the IDBI Bank gets capital strengthen of Rs 10,000-Rs 13,000 crore.
State-owned LIC has been looking to enter the banking area by means of acquiring majority stake in IDBI Bank as the deal is anticipated to offer industry synergies in spite of the lender's stressed balance sheet.
"You will get to know whatever is the decision. You will get to know after the minutes of the Board meeting are approved. We will be posting it on our website," Irdai Chairman Subhash Chandra Khuntia told reporters after the Board assembly in Hyderabad.
However, in step with sources the regulator has accepted the LIC to pick out as much as 51 according to cent stake in IDBI Bank, thereby stress-free existing laws for funding.
As according to norms, an insurance coverage company can't grasp greater than 15 according to cent stake in a company.
IDBI Bank is grappling with mounting toxic loans with gross non-performing property emerging to a staggering Rs 55,600 crore at the finish of recent March quarter. During the 3 months, the lender's web loss stood at Rs five,663 crore.
The decision, they stated used to be taken at a the assembly of the Board of Directors of Insurance Regulatory and Development Authority of India (Irdai) at Hyderabad this afternoon.
LIC these days grasp 11 according to cent stake within the financial institution.
Sources added that if deal is going via, the IDBI Bank gets capital strengthen of Rs 10,000-Rs 13,000 crore.
State-owned LIC has been looking to enter the banking area by means of acquiring majority stake in IDBI Bank as the deal is anticipated to offer industry synergies in spite of the lender's stressed balance sheet.
"You will get to know whatever is the decision. You will get to know after the minutes of the Board meeting are approved. We will be posting it on our website," Irdai Chairman Subhash Chandra Khuntia told reporters after the Board assembly in Hyderabad.
However, in step with sources the regulator has accepted the LIC to pick out as much as 51 according to cent stake in IDBI Bank, thereby stress-free existing laws for funding.
As according to norms, an insurance coverage company can't grasp greater than 15 according to cent stake in a company.
IDBI Bank is grappling with mounting toxic loans with gross non-performing property emerging to a staggering Rs 55,600 crore at the finish of recent March quarter. During the 3 months, the lender's web loss stood at Rs five,663 crore.
Irdai permits LIC to pick up to 51% stake in debt ridden IDBI Bank
![Irdai permits LIC to pick up to 51% stake in debt ridden IDBI Bank]()
Reviewed by Kailash
on
June 29, 2018
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