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LIC Completes Acquisition Of Controlling Stake In IDBI Bank: 10 Things To Know
22 Jan 2019, 02:53 PM IST 
At the end of the December quarter, LIC held a 44.3 per cent stake in IDBI Bank.
- The increase in IDBI Bank stake by LIC will help the insurance major enter the banking space.
- In its statement on Monday, the bank said that improved financial health will pave the way for the bank to exit from the central bank's prompt corrective action (PCA) plan in a time-bound manner. Eleven banks with high bad debts are under the Reserve Bank of India's PCA framework that prohibits them from further lending.
- IDBI Bank said it expects its retail loan portfolio to reach 50 per cent of overall lending by financial year 2019-20. The retail loan portfolio, it said, has increased to 46 per cent (of overall lending) in financial year 2017-18, from 32 per cent in 2014-15.
- Over 1,800 IDBI Bank branches can be used as touch points for selling LIC policies, the filing noted, adding that the bank has about 1.5 crore retail customers and about 18,000 employees.
- Over 900 IDBI Bank branches are proposed to be enabled for settlement payments via NEFT or National Electronic Funds Transfer, the public sector bank said. NEFT is an instant money transfer system maintained by the Reserve Bank of India (RBI).
- IDBI Bank and LIC have started working to ensure full realisation of their synergies over the next 12 months, it added. "Strong together, they (IDBI Bank and LIC) bring the convenience of banking and insurance services under one window for all their customers."
- The deal was cleared by the government in August, and approved by the bank's shareholders in October last year.
- IDBI Bank said it would extend its cash management facility to LIC, which will help in boosting its current account balances and reduce its cost of funds. The bank would also get access to a network of more than 1 lakh employees and 11 lakh agents of LIC.
- Debt-ridden IDBI Bank has reported eighth consecutive quarterly losses - its longest streak of quarterly losses since at least 2005.
- At the end of the December quarter, LIC held a 44.3 per cent stake in IDBI Bank.
