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Cabinet nod to LIC buying 51% stake in debt-ridden IDBI Bank
New Delhi, Aug 1 (IANS) The Cabinet on Wednesday approved purchase of a controlling 51 per cent stake in IDBI by the state-run Life Insurance Corp (LIC) which would result in the government becoming a minority shareholder.
The nod is a bid to turnaround the loss making government-owned IDBI Bank struggling with accumulated bad loans.
IDBI’s gross non-performing assets (NPAs), or bad loans, amounted to a staggering Rs 55,600 crore at the end of the fourth quarter ended March.
The LIC board had last month approved the acquisition of controlling interest in the IDBI through the issue of preferential shares.
Briefing reporters here following a cabinet meeting, acting Finance Minister Piyush Goyal said increasing LIC’s current shareholding of around 6-7 per cent in IDBI to a controlling interest would provide capital infusion for the bank, help professionalise its management, as well as increase the insurer’s reach through the 2,000-odd branches of IDBI.
“It will be a win-win situation for both. Unlike other insurers, there is no bank linked with LIC. The acquisition has wide-ranging synergy benefits for LIC and the bank,” Goyal said.
“It is big decision for the Indian banking system. As a 51 per cent subsidiary of LIC, IDBI’s capital adequacy will be strengthened and it will be able to come out more quickly of RBI’s Prompt Corrective Action (PCA) framework for resolution of stressed assets,” he said.
“LIC would get the captive services for selling of insurance products through the bank’s network of 1,916 branches, besides access to bank’s cash management services.
“The bank, in turn, would get an opportunity to tap 11 lakh LIC agents for doorstep banking services,” he added.
Goyal also noted that with the growth in its income, the bank would also be positioned to benefit from lower cost of funds through acquisition of low-cost deposits, and fee income from payment services.
The Minister said that the final approval for the stake purchase is awaited from the Insurance Regulatory and Development Authority of India.
–IANS
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Dr. Abhishek Verma Dedicates a Shelter in Memory of His Mother, Veena Verma, at KGMU; Inaugurated by Daughter Nicolle Verma
World-renowned business tycoon Dr. Abhishek Verma has supported Foodman Vishal Singh’s Hunger-Free World mission. In memory of his mother, Late Veena Verma, who was a 3 term Rajya Sabha MP.
Dr. Verma dedicated a state-of-the-art free permanent shelter for the attendants of patients at KGMU Medical University, Lucknow, under the aegis of Vijay Shree Foundation. His daughter, Nicolle Verma, inaugurated the shelter.
During the event, Foodman Vishal Singh honored Nicolle Verma by presenting her with a memento. Mrs. Nidhi Sharma and Avantika Yadav, associated with the organization, welcomed her with garlands. Following this, Nicolle Verma distributed essential items to the attendants and also handed out fruits. She became emotional remembering her grandmother on her birth anniversary.
On this occasion, she also inaugurated the “Veena Verma Sevalaya” in memory of her grandmother, Veena Verma, to serve the attendants. She expressed, “I feel proud that my family is engaged in nation-building as well as social service. Today, in collaboration with Vijay Shree Foundation founder Foodman Vishal Singh Ji, I feel immensely proud to dedicate this shelter for the poor, helpless, and needy attendants of patients battling serious illnesses like cancer. I am honored to be associated with the Hunger-Free World Mission for humanity.”
Inspired by the continuous humanitarian service provided by Vijay Shree Foundation over the past 17 years, Nicolle Verma donated 10 lakh rupees to support the cause. The purpose of this donation is to ensure that services continue for the needy attendants of patients suffering from severe illnesses in hospitals, as facilitated by Foodman Vishal Singh.
It is noteworthy that Dr. Abhishek Verma’s family has a legacy of public and philanthropic service. They are helping millions to carry forward the values and service work of their parents. On the occasion of his mother’s birth anniversary, Dr. Abhishek Verma dedicated this state-of-the-art permanent shelter at Lucknow Medical College to serve the attendants of patients through the Vijay Shree Foundation.
Supporting Foodman Vishal Singh’s Hunger-Free World mission, Dr. Abhishek Verma assured that he would continually support keeping this flame of humanity alive. He also promised to assist in providing medicines to the helpless patients.
Continuing her grandmother’s legacy of service, Nicolle Verma personally served food to the needy patients and attendants. She said, “It is our good fortune to have received the joy of doing this noble work today through Foodman Vishal Singh. I have taken another step forward in carrying my family’s values and cooperation by joining hands with the Vijay Shree Foundation. My father taught me to serve and help the needy, and I feel happy when I bring a smile to someone’s face.”
On the birth anniversary of the late Veena Verma, the event organizer, Vijay Shree Foundation founder Foodman Vishal Singh, said, “We feel proud and happy that Dr. Abhishek Verma, a globally renowned business tycoon, has extended his support to uplift our country from the hunger index. Today, on his mother’s birth anniversary, he inaugurated a state-of-the-art permanent shelter at Lucknow Medical College, which will always be helpful for the needy attendants of patients. It is a pleasure for me and the organization to receive the affection of Mr. Verma.”
The event was attended by General Manager Verma Family Office Hemant Garg, Sonu Rajput, and the organization’s volunteers, including Sandeep Singh, Parmeshwar Ji, Prashant Rao Gautam, Balram Singh, Ramesh Chaudhary, Suman, Jeetu, Anil, Suraj, Vinay, Manish Bhadauria, Manas Mehrotra, Vivek, Apurv, Happy, and others.