New Delhi: IDBI Bank has received a letter from insurance behemoth Life Insurance Corporation of India (LIC) for acquiring 51 per cent controlling stake in the bank as a majority promoter.
The bank will now seek government approval for the deal. In a BSE filing, IDBI Bank said, “The bank has received a letter dated July 16, 2018 from Life Insurance Corporation of India expressing their interest in acquiring a 51 per cent controlling stake in IDBI Bank, as a promoter through preferential allotment of shares/open offer.”
Bank’s board at its meeting held on Tuesday considered the letter and decided to seek approval from the Government of India in this regard.
The board of state-run LIC on Monday approved the acquisition of up to 51 per cent stake in the government-owned lender, Economic Affairs Secretary SC Garg said.
One major challenge for the insurance company while investing in the bank would be its humungous non-performing assets (NPAs).