India’s largest Insurance Company LIC has now entered into the banking sector as well. Last month, Life Insurance Corporation of India (LIC) completed the process of acquiring 51 per cent shares in the IDBI Bank. Now, a proposal of new name has been given by the Board of IDBI Bank after which, the bank will be named either LIC IDBI Bank or LIC Bank. The Board has proposed LIC IDBI Bank Ltd as the first preference by LIC Bank Ltd.
The IDBI Bank reported a net loss of Rs 1524.31 crore in the corresponding quarter of the previous fiscal year. The bank posted a huge loss by nearly threefold to Rs 4,185.48 crore for the third quarter ended December 2018 as bad loans surged.
In the August month of 2018, the Cabinet approved the acquisition of controlling stake by LIC as a promoter in the bank through a combination of preferential allotment and open offer to equity.
The board of Insurance Regulatory and Development Authority of India (Irdai), at its meeting held in Hyderabad in June, 2018 had permitted LIC to increase its stake from 10.82 per cent to 51 per cent in IDBI Bank.
The IDBI Bank provides a wide gamut of financial products and services encompassing deposits, loans, payment services and investment solutions and also aim at delivering relevant financial solutions and excellent customer service.
Currently, more than 250 million people are insured under the policies by Life Insurance Corporation of India.