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IRDAI Board Meet: LIC gets nod to buy 51% in IDBI Bank

The Insurance Regulatory and Development Authority of India (Irdai) on Friday approved a proposal by Life Insurance Corporation of India (LIC) to raise its stake in IDBI Bank up to 51% from the current 10.82%, giving the country’s largest insurer special relaxation from its 15% holding cap for insurers in a single firm. The deal will save the government from having to infuse more funds into IDBI Bank, which had received as much as Rs 10,610 crore last fiscal, the most by any public-sector bank (PSB). However, analysts said it will test the resolve of regulators who may have to extend a series of such special waivers for LIC for the deal to go through. Also, analysts feel the deal to acquire the stressed bank could also cast clouds on LIC’s fiduciary duty to its millions of policyholders.

It is not immediately clear whether the deal involves fresh equity infusion by IDBI Bank or a direct sale of the government’s stake in the bank that currently stands at 81%.

A senior Irdai executive present at the meeting told FE: “We have also asked LIC to decide by when it plans to reduce its stake below the regulatory limit of 15% (once its acquisition of more stake is over). This decision will be taken by its board of directors.”

The additional stake would cost LIC more than Rs 9,000 crore. While it was reported that LIC could infuse Rs 13,000 crore into IDBI Bank, the lender on Friday informed the stock exchanges that “no such discussion has taken place” in its board.

Despite massive infusion by the government last fiscal, IDBI Bank’s core equity capital stood at 7.42% as on March 31, just above the minimum regulatory requirement of 7.37%. Its gross non-performing assets (NPAs) zoomed to 27.95% and net NPAs to 16.69%, the most reported by any PSB.

Having fallen as much as 16% in the past one month, shares of IDBI Bank surged over 10% on Friday amid reports of the acquisition of a majority stake by LIC. The share jumped almost 12% in intra-day trade before shedding gains.



7 sites where you can easily learn stock trading without risking your money

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Nokia's Best Smartphone Phone "Nokia 9" With New Technology Will Launch On August 21st

Nokia's Best Smartphone Phone "Nokia 9" With New Technology Will Launch On August 21st

HMD Global, the licensee of Nokia branded phones, recently sent out media invites in India for an Augusnow the official Twitter handle of Nokia has sent out yet another tweet confirming a mysterious launch on the same date. It remains to be seen whether it’s the global variant of Nokia X6 or an upcoming flagship from the phone makert 21st event.
Also Read : Latest Android Smartphone OPPO F9  With 6 GB RAM And Waterdrop Feature
The tweet from the company reads, “Get ready to unveil the most awaited phones“, which several reports indicate could mean the upcoming flagship – the Nokia 9.

The specs are concerned, earlier rumours have suggested that the forthcoming flagship is expected to come with a 6.01-inch AMOLED display with an 18:9 aspect ratio and QHD+ resolution. Driving the performance will be a Qualcomm Snapdragon 845 processor backed by beefy 8GB RAM and 256GB storage.The phone will b…

Android Next Version is Here The Name is Android Pie

Android Next Version is Here The Name is Android Pie

The stable version of Android 9 Pie was officially released on Tuesday for the Google Pixel/XL and the Google Pixel 2/XL. On the same date, Essential rolled out the Android Pie update for the Essential Phone. The OnePlus 6 is currently on Android Pie beta 3, while the Nokia 7 Plusjust received Android Pie beta 4. An alpha build of Android Pie has leaked for the Xiaomi Mi Mix 2S, and we should be receiving more news soon for other smartphones eligible for the Android P beta program.
On the other hand, companies like Samsung, Huawei, LG, and HTC didn’t participate in the Android Pie beta program. HTC has now revealed which of its phones will receive the Android Pie update.
HTC has confirmed via Twitter that the company will roll out Android Pie updates for the HTC U11, HTC U11+, the Android One variant of the HTC U11 Life, and the company’s current flagship, the HTC U12+. The company states that time frames for the update roll-out will b…