Mumbai, Jan 21 (IEBusiness) LIC completed acquisition of 51 percent controlling stake in IDBI Bank Monday, making it the majority shareholder of the bank.
The deal, conceptualized in June 2018, is envisaged as a win-win situation for both IDBI Bank and LIC with an opportunity to create enormous value for shareholders,customers & employees of both entities through mutual synergies.
The transaction promises a paradigm shift for both partners, creating for the first-time a unique financial conglomerate in India, IDBI Bank said in a filing with BSE.
LIC and IDBI Banks are two of the most trusted brands in the country.
Strong together, they bring the convenience of banking and insurance services under one window for all their customers.
IDBI Bank has about 1.5 crore retail customers and about 18,000 employees. With this deal, LIC will have a strategic investment in a large bancassurance channel, thereby increasing its productivity and reducing distribution costs. Over i800 branches of IDBI Bank can be used as touch points for selling LIC policies. More than goo of the bank’s branches are also proposed to be enabled for settlement payments via NEFT.
The bank will extend its cash management facility to LIC, which will help in boosting its current account balances and reduce its cost of funds. IDBI Bank will get access to a wide network of over 1 lakh employees and ten lakh agents of LIC.
In addition, LIC employees and agents will get access to preferential and value-added banking services. Customers’ trust in the LIC brand will strengthen IDBI Bank’s position in the industry.