Govt to reduce stake in LIC, exit IDBI Bank

Govt to reduce stake in LIC, exit IDBI Bank

Agency News

New Delhi, Feb 1: The government will sell a part of its stake in the country's largest insurer, Life Insurance Corporation of India, through an Initial Public Offering, Finance Minister Nirmala Sitharaman said on Saturday.

She also announced that the government will sell its entire 46.5 per cent stake in IDBI Bank to private players. "Listing of companies on stock exchanges disciplines the company and provides access to financial markets and unlocks its value. It also gives an opportunity for retail investors to participate in the wealth so created," said Sitharaman. State-owned LIC has 51 per cent stake in the debt-ridden IDBI.

In September, LIC and the government had infused Rs 9,300 crore as equity capital into the bank. LIC will pump in an additional Rs 4,743 crore to improve the bank's capital position. The finance minister said a clean, reliable and robust financial sector is required to achieve a 5 trillion dollar economy. After the announcements, shares of IDBI Bank surged 18 per cent to Rs 39.90. It closed 37.55, gaining Rs 3.50 or 10.28 per cent a share on the NSE. (UNI)