IDBI Bank names RBSA as financial advisor to vet LIC's acquisition proposal

Public sector lender IDBI Bank has appointed investment banking outfit RBSA Advisors as financial advisor for evaluating the potential of an investment proposal by the Life Insurance Corporation of India (LIC). On August 1, the Union Cabinet had approved the LIC’s proposed acquisition of up to 51 per cent stake in the debt-ridden IDBI Bank.

The LIC stake buy may help the bank get capital support of Rs100-130 billion. With the acquisition of a majority stake, LIC is expected to appoint at least four members on the bank’s board, RBSA said in a statement.