IDBI Bank stake sale: LIC board to meet today to finalise stake buy in debt struck public sector bank
.jpg)
LIC-IDBI Bank deal: The LIC board will meet on Monday to take a decision on acquisition of of the government’s 51 percent stake in IDBI Bank. The proposal has already been cleared by the insurance regulator IRDAI two weeks back as the insurance companies are not permitted to own more than 15 percent stake in the company under the current norms. The state-owned insurance behemoth will approach market regulator SEBI once it received board’s approval. LIC board’s today’s meeting is scheduled in Mumbai. LIC will approach Sebi on the issue of meeting open offer regulations of the Sebi, once the LIC board clears the proposal.
“The LIC-IDBI Bank deal will trigger an open offer to protect the interest of minority shareholders in the bank,” PTI reported citing unidentified sources. The stake purchase move is expected to help the debt-struck public sector bank to get a capital support of Rs 100-130 billion. An acquirer has to be place an open offer to the target company’s shareholders on acquiring shares or voting rights of 25 per cent or more, according to the Sebi takeover code.
The insurance sector watchdog in its last meeting held in Hyderabad last month, had permitted the insurance company to hike its stake from 10.82 percent to 51 percent in IDBI Bank. Any insurance company can’t hold more than 15 percent in any listed financial firms.
LIC has been looking to enter the banking space by acquiring a majority stake in IDBI Bank as the deal is expected to provide business synergies despite the lender’s stressed balance sheet.
The insurance behemoth get about 2,000 branches through which it can sell its products, while the bank would get massive funds of LIC. The IDBI Bank would also get accounts of about 22 crore policy holders and subsequent flow of fund.
If the deal goes through, state-owned bank which is grappling with rising toxic loans with gross non-performing assets rising to a staggering Rs 556 bn at the end of the March quarter, will get much needed capital support to revive its fortune.
Other Latest News
.webp)
Former Prime Minister Manmohan Singh passed away on December 26 at the age of 92, following prolonged health issues. Reflecting on his fond memories of the former Prime Minister, Pramod Kumar Mishra, principal secretary to Prime Minister Narendra Modi said, “We have lost a very distinguished leader, an eminent economist and a great human being, with the passing away of Dr Manmohan Singh. My memories of Manmohan Singh date back to the time when he was teaching at the Delhi School of Economics.”
.webp)
The Indian rupee fell to an all-time low on Friday, as maturing non-deliverable forwards and currency futures boosted dollar demand, while the sharp fall led to panic dollar buying by importers.
The rupee weakened to an all-time low of 85.8075 against the U.S. dollar, before intervention by the central bank helped it trim steep losses, according to traders.
.webp)
Tamil Nadu BJP chief K Annamalai staged a unique agitation here on Friday when he flogged himself condemning the ruling DMK and the state police over the handling of the case of sexual assault on a Chennai college student on Christmas eve.
Clad in green dhoti, a bare-chested Annamalai took a whip from his party worker and whipped himself repeatedly, in front of his residence here, as the BJP members stood around him displaying placards condemning the police for the alleged leak of FIR pertaining to the woman's complaint.
.webp)
State-owned NBCC has bagged a Rs 300-crore contract to develop a commercial complex in Varanasi, Uttar Pradesh.
In a regulatory filing on Friday, the company said it has secured a Rs 300-crore order for "development of Jawaharlal Nehru Commercial Complex (JLNCC), Englishya Lines, Varanasi on self-sustainable model".
.webp)
The opposition party in Andhra Pradesh, YSRCP, on Friday took out statewide protests and rallies opposing power tariff hikes in the southern state under the TDP-led NDA government.
YSRCP leaders and cadres protested at several places across the state, including Nellore, Chittoor, Krishna, Tirupati, Visakhapatnam, Kakinada, Kurnool and others.
.webp)
.webp)
.webp)
.webp)
.webp)
