LIC’s new offer to IDBI Bank’s Shareholders, can buy 51 percent stake | Share Market Tips

Share Market Tips

Here comes great news for IDBI Bank shareholders. India’s largest insurance company LIC (Life Insurance Corporation of India) is bringing new offers for IDBI Bank shareholders. The main objective of the company is to buy 51 percent Equity of the Bank by providing new offers to shareholders. Soon the market regulator SEBI will also have connected with contact.

LIC is trying to make a space in the banking sector since this will increase the growth of the overall Business. It will benefit not only to LIC but also to the bank shareholders since the shareholders will get the insurance(Get more share market Tips). LIC will get the profit of 2000 branches through which it can sell its services, on the other side Bank will get the huge financial help from the LIC Company. Bank will not only get financial help but also get an account of 22 crore policyholders.

But sources said that LIC Employee union is opposing the contact to get 51% stake in IDBI Bank as it will affect policyholders and their premium money. LIC has already invested Rs 1,850 crore in government banks in 2014-15 and Rs 2,539 crore in 2015-16.

LIC currently holds 11 percent stake in IDBI Bank and 35.9 percent of the Total Stressed Portfolio in the total loan amount of the bank.

After contacting most of the policy rules will chance and it will affect totally to the number of shareholders.

On the other hand, IRDAI approves LIC-IDBI Bank deal. According to the protocol, no insurance company can hold more than 15% stake in any company. But earlier in Hyderabad last month a meeting was held in which IRDAI has already approved the proposal to purchase LIC’s stake in IDBI Bank.

So after this contact, IDBI Bank shareholders will get the benefit and LIC’S policyholders may lose some of their amounts, but the growth of LIC Company will increase after this contact.