The Cabinet cleared a deal to allow LIC raise its stake in IDBI Bank to 51 per cent, Finance Minister Piyush Goyal said, briefing reporters after the Cabinet meeting. IDBI Bank will make a preferential allotment of shares to LIC, which will ensure that the lender gets fund infusion from the Corporation. Depending upon the price at which preferential shares are issued, the IDBI Bank may get capital infusion of around Rs 13,000 crore while its management and ownership control will shift to LIC.
Goyal said this is an “absolutely brilliant” and a “win-win” deal for both LIC and the IDBI Bank, as the Corporation will benefit from the bank’s nearly 2000 branches across the country while the lender will get capital to fund its expansion.
