IDBI Bank Disinvestment: Chairman of Life Insurance Corporation of India has given a big statement regarding selling his stake in IDBI Bank. He has also told his future plans.
LIC Disinvestment Plan in IDBI Bank: IDBI Bank’s promoter Life Insurance Corporation of India has given a big statement regarding selling its stake in the bank. The insurance company has said that LIC wants to retain some of its stake in IDBI Bank to take advantage of the bank-insurance business. Speaking to PTI, LIC Chairman Siddharth Mohanty said that LIC does not want to sell its entire stake at present.
IDBI Bank is necessary for bank-insurance business-
LIC Chairman said that IDBI Bank is an important partner of the bank-insurance business of Life Insurance Corporation of India. In such a situation, LIC wants to retain some of its stake in the bank in future also so that the bank remains an important part of its bank-insurance business.
What is bank-insurance business?
It is noteworthy that through bank-insurance business, insurance products are sold through banks. In such a situation, IDBI Bank plays an important role in saving the products of LIC. It is worth noting that the government has been preparing to sell stake in IDBI Bank in collaboration with LIC for a long time. Government’s stake in this bank is 45 percent and LIC’s stake is 49.24 percent. The government wants to sell 60.70 percent of its stake in LIC under the disinvestment plan.
When will the disinvestment process be completed?
Giving major information on the process of disinvestment, Tuhin Kant Pandey, Secretary of DIPAM i.e. Department of Investment and Public Asset Monetization, had said that the process of disinvestment of the government and LIC in IDBI Bank can be completed by March 2024. In the year 2019, LIC became a subsidiary of IDBI Bank, but in 2020, after LIC’s stake increased to 49.24, it became a subsidiary of the bank.
