IDBI Bank has sought Rs 9,000 crore-10,000 crore to spruce up its balance sheet
This plan provides financial support for the family in case of unfortunate death of the policyholder during the policy term and a lump sum amount at the time of maturity for the surviving policyholders, it said.
IRDAI Chairman Subhash Chandra Khuntia had clarified that insurers have to make adequate provisions for IL&FS-related exposures. He added that the exposure cannot be written off
At present, the permissible limit for an insurer to hold stake in any listed entity is 15 percent.
In fact, Irda feels a time-line for reducing its stake in IDBI Bank has to be decided by the LIC management itself as a regualtor mandated time-line can impact stock prices.
With the acquisition of controlling stake by LIC, IDBI Bank will now become private sector lender. The number of public sector lenders has come down to 20 with the government transferring its majority stake in favour of LIC.
LIC had 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.
The estimated cost of the project, being constructed by the Maharashtra State Road Development Corporation, is around Rs 50,000 crore, of which around Rs 26,000 crore are required for the construction of the expressway.
As per a regulatory filing, LIC, which had 7.03 percent stake in Colgate-Palmolive earlier, brought down its shareholding in the company to 5 percent by selling shares between November 1, 2017, and January 14, 2019.
The market share of private insurers increased to 30.64 percent in 2017-18, from 28.19 percent in 2016-17.
Meanwhile, the government has already initiated process to select regular chairman and managing director of LIC.
Vacancy of chairman post arised after retirement of V K Sharma on December 31, 2018, while position of MD fell vacant after superannuation of Usha Sangwan in September last year.
A bench of Chief Justice Rajendra Menon and Justice V K Rao said the single judge had considered all aspects before denying any relief to the All India IDBI Officers Association, which had opposed the Life Insurance Corporation (LIC) move on the ground that change in shareholding could take away IDBI's public sector bank status.
The open offer has been made at a price of Rs 61.73 a share, which is in connection with LIC's acquisition of 51 percent controlling stake in IDBI Bank.
Additional Solicitor General Tushar Mehta, appearing for LIC, had also said it has applied for a banking licence.
The Left Front, which ruled Tripura for 25 years since 1993, was defeated by the BJP and IPFT combine in the election this year.
With over Rs 55,000 crore debt its its books, Air India management has been trying to pare burden by monetising non-core real estate properties.
LIC's open offer to purchase 26 percent shares of IDBI Bank opened on December 3 and will close on December 14.
Life Insurance Corporation (LIC) has generated a total valuation surplus of Rs 48,444.82 crore for fiscal 2018, which is 10.1 percent higher than what it had generated in the previous fiscal, the Corporation said in a statement Friday.
With the deal, the insurer would have access to around 2,000 branches of the bank through which it can sell its products.
Due to lack of clarity on the stake sale in IDBI Bank, there was an impact on the business of its life insurance joint venture: IDBI Federal Life
A source told Moneycontrol that the MCA may take a view on this even as the SFIO is already looking into charges of mismanagement at IL&FS.
Market folklore says that 95% of option buyers lose money. On the contrary, Subhadip Nandy consistently makes money taking directional trades using option strategies.
Of the all 24 life insurance companies, state-owned LIC witnessed a decline of nearly 30 per cent as premium income from new policies to Rs 10,778.81 crore in September as against Rs 15,302.99 crore in the same month previous year.
The open offer is in connection with the LIC's acquisition of 51 percent controlling stake in the state-owned IDBI Bank.