The government has responded to the media reports that it can ask the Life Insurance Corporation (LIC) to buy a stake in the difficulties of IDBI Bank and the IDBI Bank. However, the government also said that the boards of the respective units will take a decision in this regard.
Senior officials of the Finance Ministry said, "Both IDBI and LIC are independent organizations. We have left all the decisions on the board, we are not going to affect them." The official said this during the two-day annual summit of Asia Infrastructure Investment Bank. When asked about the two government sector companies are, the officer said that there cannot be business relations between the two government units.
In some reports, it was also said that after getting no buyer for the stake sale of IDBI Bank, the government can now ask the LIC to do so, which already has more than 10 percent stake in the bank. The government is considering a proposal to sell LIC to 40 to 43 percent stake in IDBI Bank.
According to the date of March 31, the government has 80.96 percent stake in the bank and 10.82 percent of the LIC has a stake. Media reports also said that the government has decided to implement the Insurance Regulatory and Development Authority (IRDA) and the capital market regulator. The views of the Securities and Exchange Board of India (SEBI) were also sought. IRDA does not allow LIC or any other insurance company to own over 15 percent of the company in any company.