INSUBCONTINENT EXCLUSIVE:
The government on Monday defended the move to get insurance behemoth LIC to bail out the beleaguered IDBI Bank, saying it is an acquisition
The government sources said LIC is keen on setting up a bank of its own or acquiring a public sector lender.
The sources said a strategic
sale of IDBI Bank would not have realised the real asset value
Bank, analysts and market watchers expressed shock and disapproval.
The government has said that the boards of the respective entities will
take a call on the matter.
LIC board meanwhile has decided to move IRDA and RBI for necessary approvals
The LIC-IDBI Bank will expand network with more branches and better geographical coverage and do regular banking
subsidiary LIC Housing Finance when the central bank had opened up bank licensing in 2013.
