Irdai will set timeline for LIC to scale-down stake to 15% in IDBI Bank Noor Arora
Insurance regulator Irdai will set a timeline for the Life Insurance Corporation of India (LIC) on how it must go about reducing its stakeholding from 51 per cent to 15 per cent eventually in IDBI Bank, said Subhash Khuntia, Chairman of the Insurance Regulatory and Development Authority of India (Irdai). He did not specify when the regulator will announce the timeline. Once the proposed acquisition of the bank is completed in the coming months, the insurance regulator will provide a timeline for LIC to scale-down its holding in the bank back to 15 per cent. LIC currently has a 7.98 per cent stake in IDBI Bank with the Government holding standing at 85.96 per cent. The life insurer wishes to increase its stakeholding in the Bank, given its network and institutional strength, at an investment of around Rs 100130 billion. The company will receive promoter status and management control post-acquisition.
ARTICLE SOURCE: BS