According to credit ratings agency ICRA the acquisition of a stake in IDBI Bank is likely to be done under the policyholder’s accounts of LIC and, hence, even a 51 per cent stake in the bank will not make IDBI Bank a subsidiary of LIC.
According to Anil Gupta, Head – Financial Sector Ratings, ICRA: “Being an investment in the policyholder’s account, the stake will be transient in nature and LIC will have to reduce its stake in India Ratings and Research (Ind-Ra) has downgraded IDFC Bank’s non-convertible debenture (NCD) ratings from ‘AAA/RWN (rating watch negative) to ‘AA+/ Stable’.
The downgrade reflects IndRa’s expectation that IDFC Bank would take longer than expected to build up a granular liability profile, the private sector bank said in a stock exchange notice.
“The rating action also reflects the bank’s limited competitive the bank, going forward, and bring it down to the regulatory requirement of 15 per cent.”
