LIC's acquisition of 51% in IDBI Bank a 'win-win' situation for both: Goyal

The government will not get cash through the deal and capital will be infused by LIC into IDBI Bank through preferential allotment of equity

Life Insurance Company (LIC)’s acquisition of 51 per cent stake in IDBI Bank will be a “win-win” situation for both the government-owned entities, Finance Minister Piyush Goyal said on Wednesday. 

This comes after the Union Cabinet gave nod to bring down its majority stake in the bank. “The move will make IDBI Bank strong, improve its capital adequacy and bring it out of prompt corrective action (PCA). Through the one million agents of LIC, the bank will benefit in terms of lower cost of funds through acquisition of low-cost deposits. LIC will get a captive marketing team through 1,916 branches of