IDBI Bank, under its new promoter Life Insurance Corporation of India (LIC), has begun to reap the benefits of synergies. According to the state-run lender, it sold insurance policies worth Rs 160 crore in March and hopes to add Rs 1,000 crore to its bottom-line in the coming quarters.
The bank said it has been engaging LIC’s corporate agents who will be able to sell the former’s products across their 1,800 branches.
“With all these initiatives and synergies in place, the bank will be able to add Rs 1,000 crore to its bottom-line,” said Rakesh Sharma, managing director & chief executive officer, IDBI Bank.
It may be recalled that LIC is the majority shareholder in IDBI Bank holding a 51 per cent stake in the banking entity. In January 2019, LIC completed the deal with IDBI Bank, marking its foray into the banking sector. The life insurance behemoth may consider expanding operations and engaging in full-fledged banking business over the coming quarters. “With an increased association with LIC of India in the opening of accounts and resultant balances, IDBI Bank shall move faster towards healthier balance sheet,” said LIC.
In March, IDBI bank sold 26,116 policies in the month of March 2019. IDBI Bank said that LIC’s diversified product base would enable targeting their high net-worth customers in metro and urban areas and other customers in semi-urban and rural areas.
Meanwhile, the bank also rolled out retail loan products that will only be available to LIC employees. These products offer attractive discounts and concessions in the home loan, auto loan, personal loan and education loan segments among others.
Earlier this year, IDBI Bank and LIC have also formed a task force and a bancassurance agreement, under which the lender will offer LIC’s insurance products at its over 1,800 branches, steering committee to ensure the accomplishment of synergy initiatives and achieve the policy sales targets.