Concerned over the proposed investment by Life Insurance Corporation of India (LIC) in IDBI Bank, the All India LIC Employees Federation is examining the possibility of taking legal recourse to nix the move.
The federation has already written to the top brass of the life insurance behemoth seeking to know whether IDBI Bank, whose bad loans soared to about 28 per cent of total advances as of March-end 2018, makes for good investment for LIC. “IDBI Bank’s gross non-performing assets at the end of March quarter 2018 stood at Rs. 55,588 crore. This means that the bank will need significant amount of capital to clean up its books and maintain minimum levels of regulatory capital.
