InvestorQ : What is this LIC-IDBI deal?
Tanu Shukla made post

What is this LIC-IDBI deal?

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Ayushi Kampani answered.
1 year ago
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LIC has acquired debt-ridden bank-IDBI in January last week by taking control of 51 per cent controlling stake in the bank. "The deal, conceptualised in June 2018, is envisaged as a win-win situation for both IDBI Bank and LIC with an opportunity to create enormous value for shareholders, customers & employees of both entities through mutual synergies," IDBI Bank said in a BSE filing. IDBI Bank has about 1.5 crore retail customers and about 18,000 employees. IDBI Bank has about 1.5 crore retail customers and about 18,000 employees.

The deal stared after bank reported a net loss of Rs 3,602.49 crore in the September quarter of 2018-19. The gross non-performing assets was 31.78 per cent (Rs 60,875.49 crore) of the gross advances as on September 30, 2018, as compared with 24.98 per cent in the year-ago period.

After the deal has finalised, now the name of the bank name is pending to be finalised. IDBI will now be renamed as LIC IDBI Bank or LIC Bank as the majority stake belong to IDBI.

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