The government on Tuesday approved Rs 9,300 crore fund infusion in IDBI Bank to help improve the bank’s capital base and turn it profitable.
Briefing media about Cabinet decisions, Information and Broadcasting Minister Prakash Javadekar said it will help in completing the process of IDBI Bank’s turnaround and enable it to return to profitability and normal lending, and giving government the option of recovering its investment at an opportune time.
Of the Rs 9,300 crore needed, LIC would meet 51 per cent (Rs 4,743 crore), he said.
The remaining 49 per cent, amounting to Rs 4,557 crore, is proposed from the government as its share on a one-time basis, he added.
The shareholding of the government was reduced to 46.46 percent from 86 per cent while LIC stake in the bank increased to 51 per cent in January this year.
LIC acquired controlling 51 per cent stake in the bank, making it the lender’s majority shareholder in January this year.
Source: Economic Times
