IDBI Bank has been the strongest contributor to the bancassurance channel, he said, adding for the bancassurance arrangement to continue LIC may not require to hold the entire stake.
The government may decide to sell its entire stake in one go or in tranches, depending on the investors' response.
The government is yet to invite expression of interest (EoI) for sale of its stake in IDBI Bank, and is gauging interest of investors through road shows, it informed the parliament today.
As part of the divestment, the government plans to sell its entire 45.48 per cent stake eventually.
The Life Insurance Corporation (LIC) on Monday said that would like to maintain some stake in IDBI Bank even as the government is planning to divest the insurer’s 49% stake in the bank.
The agency carried out searches at nine places, including at Mumbai, Nagpur and Chhattisgarh, at the premises of the accused which led to the recovery of incriminating documents.
The LIC-controlled bank recorded a net profit of Rs 567 crore in the July-September period, a 75 per cent jump compared to the Rs 324 crore it earned during the same period in the last fiscal.
According to the official, the department had already sought clarifications from the RBI, if business houses will be allowed to participate in the bidding process.
The government has already invited the Expression of Interest for Air India, BPCL and Shipping Corporation of India, while it hopes to complete disinvestment of IDBI Bank, Neelanchal Ispat Nigam etc.
In a new twist to the proposed LIC-IDBI Bank deal, the lender’s interim boss B Sriram has said the insurer will have management control in the bank. Till now, it was believed LIC would acquire 51 per
Apart from IDBI-LIC, government is considering non-executive chairman for two other PSBs including Allahabad Bank and UCO Bank.
The Congress and the Left criticised the government's move to buy stake in the IDBI Bank asking why was a government insurer bailing out a defaulter bank at a cost of Rs 13,000 crore.
Insurance Regulatory and Development Authority on Friday cleared the decks for state-run Life Insurance Corporation to go beyond the normal threshold and acquire up to 51 per cent stake in IDBI Bank
While a final decision is yet to emerge on whether LIC would be snapping up over 50 per cent stake in IDBI Bank, official sources said the preliminary contours of such a plan is being worked out.
State-run LIC, the black knight for IDBI Bank, can hold as much as 30 per cent equity stake in an entity as a strategic promoter, according to sources.