Optimists see the bank's performance turning around in as early as one year, but others believe it will take 3-4 years for LIC to affect a proper turnaround
Troubled public sector lender IDBI Bank got a fresh lease of life this weak from the country's largest life insurer Life Insurance Corporation of India (LIC).
In an unprecedented move, the Insurance Regulatory and Development Authority of India's board on Friday approved a proposal for LIC to own up to 51 percent stake (as against the 15 percent limit) in the PSU bank.
The move has been hailed by many as the "most workable" solution for rescuing the ailing bank from the mountain of bad loans it is currently sitting on, which is just short of 30 percent of its entire loan book.
This is not the first time the government has come to the rescue of a public sector bank. What is different is that in IDBI Bank's case, the responsibility of a bailout has shifted from taxpayers to insurance policy holders.
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Source:https://www.moneycontrol.com/news/business/idbi-bank-will-get-lics-money-but-what-more-will-it-need-to-turn-around-2655141.html
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