State-owned lender IDBI Bank has informed stock exchanges that Life Insurance Corp. (LIC) of India now owns 14.37% stake in the bank. The life insurance behemoth previously owned 7.21% in the bank, which transferred 7.16% equity stake or 15.87 crore shares to LIC.
- With this transaction, IDBI Bank is now the second largest bank holding for LIC. As on 31 December, the insurance provider owned 21.22% stake in Corporation Bank, the highest equity it holds in any lender.
- Apart from these two, LIC owns 14.36% stake in UCO Bank and 13.75% stake in Canara Bank, at the end of the third quarter.
- The government directly owned an 80.16% stake in IDBI Bank as of 31 December.
- On 20 February, IDBI Bank’s board had approved the bank’s plan for a preferential issue of capital to LIC, aggregating up to Rs.1,500 crore.
- Earlier this month, the state-owned lender had stated that it plans to raise Rs.19,000-20,000 crore worth of equity capital by March 2019, through all available options such as qualified institutional placements (QIPs) and preferential allotment to large strategic investors.
- Apart from this, the bank will also try to raise debt capital worth Rs.4,000 crore by issuing tier-I bonds and Rs.8,000-9,000 crore through tier-II bonds during the next three years.
