Only 22% minority shareholders exit IDBI Bank following open offer by LIC
IDBI Bank would get huge amount of low-cost deposits of the policy holder and it can also cross-sale products of LIC. The bancassurance would generate good amount of cash, which according to experts would push them out of red. The bank had reported a net loss to Rs 3,602.49 crore during the September quarter of 2018-19.
LIC has been looking to enter the banking space by acquiring a majority stake in IDBI Bank, as the deal is expected to provide business synergies despite the lender's stressed balance sheet. Image source: Reuters