Union Cabinet clears purchase of 51 per cent controlling stakes in IDBI Bank by LIC

The Union Cabinet has cleared the purchase of 51 per cent controlling stake in IDBI Bank by state-run Life Insurance Corporation (LIC).

As per the proposal, the debt-laden bank will issue preferential shares to LIC to raise capital. 

An official release said, the measure will financially strengthen both



LIC and IDBI, as well as their subsidiaries which offer financial products, such as housing finance and mutual funds. 

The IDBI would get an opportunity to tap 11 lakh LIC agents for doorstep banking services, positioning it to improve customer services and deepen financial inclusion.