IDBI Bank In­dia to raise Rs1,500 crore by sell­ing stake to LIC

The Pak Banker - - COMPANIES/BOSS -

State-owned IDBI Bank on Satur­day said it plans to raise up to Rs.1,500 crore by sell­ing stake to Life In­sur­ance Cor­po­ra­tion of In­dia (LIC) by pref­er­en­tial is­suance of shares to the in­surer.

The board has ap­proved the pro­posal for pref­er­en­tial is­sue of cap­i­tal to Life In­sur­ance Cor­po­ra­tion, ag­gre­gat­ing up to Rs.1,500 crore (in­clu­sive of pre­mium amount) sub­ject to the govern­ment of In­dia's ap­proval, IDBI Bank said in a state­ment.

LIC and var­i­ous other schemes cur­rently hold 7.25% stake in IDBI Bank. Last week, the bank also got board ap­proval for rais­ing up to $500 mil­lion through tier I bonds. The board has ap­proved is­suance of Basel III com­pli­ant Ad­di­tional Tier 1 (AT 1) bonds in off­shore mar­kets up to $500 mil­lion to en­hance tier 1 cap­i­tal of the bank, the bank had said.

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