IDBI Bank says ‘no discussion’ on investment by LIC

IDBI Bank says ‘no discussion’ on investment by LIC

On Friday, IDBI Bank shares rose 10.02% to ₹ 54.90 apiece on the BSE. Photo: Mint

On Friday, IDBI Bank shares rose 10.02% to ₹ 54.90 apiece on the BSE. Photo: Mint

New Delhi: IDBI Bank Ltd on Friday said there has been no discussion with Life Insurance Corporation of India (LIC) regarding investment of ₹ 13,000 crore in the bank. “Please refer to your mail dated June 29, 2018, regarding news clarification ‘LIC plans ₹ 130 billion capital injection in IDBI Bank. It is hereby informed that no such discussion has taken place in the board of the IDBI Bank,” the public sector bank informed the stock exchanges on Friday.

In case such a communication is received or such matter is discussed in the board meeting, the disclosure thereof will be made immediately to the stock exchanges, IDBI Bank said in the filing.

The clarification came after Mint reported said that insurance regulator Insurance Regulatory Authority of India (IRDA) may approve LIC’s proposal to pick up a substantial stake in IDBI Bank, which will come up with a capital infusion of ₹ 130 billion, or ₹ 13,000 crore.

People aware of developments have said that LIC is looking to enter the banking space by acquiring a majority stake in IDBI Bank as the deal is expected to provide business synergies despite the lender’s stressed balance sheet.

IDBI Bank is saddled with NPAs and the government wants to revive the lender. On Friday, IDBI Bank shares rose 10.02% to ₹ 54.90 apiece on the BSE.

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