How about LIC Bank? With insurer as new owner IDBI Bank wants name change

Bank board's proposal in this regard must receive nod from RBI, shareholders and Stock Exchanges; it is also subject to name availability and reservation by MCA

With the Life Insurance Corporation of India (LIC) picking up 51 per cent stake in IDBI Bank, the lender's board wants to change its name to LIC IDBI Bank or LIC Bank.

The bank informed BSE that the board, at its meeting held on February 4, has approved a proposal for change of name of IDBI Bank.

The change in name will be subject to Reserve Bank of India’s no objection, name availability and reservation by Ministry of Corporate Affairs (MCA), and nod from shareholders and Stock Exchanges, it said.

The first preference will be for name LIC IDBI Bank Ltd and second preference is for LIC Bank Ltd.

LIC completed acquisition of 51 per cent controlling stake in IDBI Bank on January 21. The lender received total capital of Rs 21,624 crore from LIC.

Meanwhile IDBI Bank said in a statement that some of the areas of business synergy include extending LIC’s outreach by designating IDBI Bank’s 1,800-plus branches as customer zones for cross-selling and servicing of the insurer's products.

The bank could tap LIC’s wide distribution network, including over a million agents, to cross-sell the its own products and services.

The lender could also extend broking, investment and advisory services to LIC on its future acquisitions and selloffs, it added.