Skip to main content

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.

Comments

Popular

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

Now lets look at some of the websites which you can use to practice stock trading. 1) MoneybhaiMoneybhai, a virtual stock trading game is a product of moneycontrol virtual trading which is popular in India. In this game you will get Rs.1 crore virtual money on your portfolio account and also the limit of Rs.1 crore intraday trading limit, which means that you can only buy and sell worth Rs 1 crore in a day. You will have the options to invest in stocks, mutual funds, FD, bonds etc. So here you have lots of options for investing with the imaginary brokerage charge of 0.50% in virtual trade market. This is a great feature, because here you are also paying virtual brokerage charge which you have to pay in real life when you trade with your real money, so that is taken care in this website. Who should use this one : If you want lot of options to invest like FD, bonds, mutual funds, stock etc. then this game is good for you. You can start trading any moment once you are logged in. If you f…

Latest Android Version Updates For New Smartphones Is Android 9 Pie

Android Latest Version Updates :Android 9 Pie
For Google, there are three main themes to Android  9 Pie: intelligence, simplicity and digital wellbeing. The Android 9 Pie release is the proof in the proverbial pudding that Android as an operating system has hit its stride. Latest Smartphones

Lacking neither underlying features or surface polish, Android 9 Pie(Android Version Updates)is the most complete, comprehensive and consistent version of Android yet. It delivers on many of the promises of Android versions Updates past, bringing us a new navigation system and app overview, better notification handling and resource management, and more embedded AI than you can poke a stick at.
Android 9 Pie For Smart Phones Updates Latest Smartphones

Tap for homeLong press for Google AssistantSwipe right and release for most recent appSwipe right and hold to scroll through recent apps(Android Version Updates)Swipe up to show recent apps menu and suggested appsSwipe further up to open app drawer (or sw…

Latest Smartphone OPPO F9 with Waterdrop Display and 6 GB RAM launched

Latest Smartphone OPPO F9 with Waterdrop Display and 6 GB RAM launchedOppo F9 has been launched. The new smartphone is the first handset by Oppo that features a V-shaped waterdrop display notch - unlike the traditional rectangular display notch. Also, there is a thin-bezel display that offers a 90.8 percent screen-to-body ratio. 
While the OPPO F9 ProSmartphone is set to debut in India on August 21, specifications of the upcoming handset have now surfaced through a sales pitch note. The leaked note suggests that the F9 Pro could be the India variant of the OPPO F9. The handset is rumored to come with the VOOC integration for fast charging support and a 6.3 display with the V-shaped waterdrop notch design identical to the Oppo F9  smartphone.
Also Read : Latest Android Version Updates For New Smartphones Is Android 9 Pie

New Smartphone Oppo F9 With Specifications And Features
1. The Dual-SIM (Nano) Oppo F9 runs ColorOS 5.2 based on Latest Android Version Android 8.1 Oreo.
2. A 6.3-inch ful…