Afternoon D & C Dedicated To Mumbai
Home > Business > IRDAI to set timeline for LIC to cut stake in IDBI Bank to 15%

IRDAI to set timeline for LIC to cut stake in IDBI Bank to 15%

Saturday, September 08, 2018

The Insurance Regulatory and Development Authority of India (IRDAI) yesterday said it will set the timeline to reduce LIC's shareholding in IDBI Bank from 51% to 15%. However, it added that the timeline will only be set after looking at LIC's business plan post acquisition of 51% stake in debt-ridden IDBI Bank.

LIC currently holds 7.98% in debt-ridden IDBI Bank, and is in the process of increasing its stake to 51%, which would help it enter the banking space. The insurance regulator in

June had permitted LIC to increase its stake to 51% in IDBI Bank. The government, which currently holds 85.96% in IDBI Bank, had also approved the LIC's proposal to hike stake last month.

"We will look at their (LIC's) business plan (post acquisition of 51% stake in IDBI Bank) and then decide on reduction of its stake in IDBI Bank (to 15%)," IRDAI chairman S C Khuntia told reporters on the sidelines of an insurance summit organised by Assocham in Mumbai.

The permissible limit for insurance companies to hold stake in any listed entity is 15% at present. "LIC will have to safeguard the interest of policyholders while reducing it's stake in the bank," he said.

On Tuesday, the LIC board had said it has taken a decision on the modalities of increasing stake in IDBI Bank to 51%. The national insurer is also in the process of picking up an additional 7% stake in IDBI Bank through preference shares. With this, its total holding in the bank would rise to 14.9%, from 7.98% at present.

The All India IDBI Officers Association (AIIOA) had challenged the LIC's move to acquire 51% stake in IDBI Bank in the Delhi High Court. It has also sought withdrawal of the approval given by the IRDAI to the transaction.

COMMENTS
No Comments Posted
POST YOUR COMMENTS
Name:  
 
Email:    
Comments:
 
 
City news
...gives clean chit to Amit Shah, IPS officer ...
Tout flees from city, takes Rs 50,000 from ...
It was unfortunate that a man, who became ...
Heart To Heart
Dr. Rajan B. Bhonsle, M.D. (Bom)
Consulting Sex Therapist & Counsellor
Dr. (Mrs.) Minnu R. Bhonsle, Ph.D.
Consulting Psychotherapist & Counsellor
Astrology
Select Sun sign:
 
Aries (Mar 21 - Apr 20)
Aries (Mar 21 - Apr 20)Today, you will turn an attentive ear to your inner voice. As a result, you will able to execute all your plans with precision. Besides being cheerful, you will even take disappointments with a pinch of salt. Why just today, says Ganesha, you can have this rare quality for keeps.
- Advertising -
Older people fear Alzheimer’s more than any other
Beware of medical spas and quacks offering ‘skin
If you are pregnant, your skin care routine needs
Read More