IDBI Bank, on Monday, said LIC has completed the acquisition of a 51 per cent controlling stake in the bank, making it the majority shareholder. The deal, conceptualised in June 2018, is envisaged as a win-win situation for the bank and LIC, with an opportunity to create enormous value for shareholders, customers, and employees of both entities through mutual synergies.
“The transaction promises a paradigm shift for both partners, creating for the first time a unique financial conglomerate in India....With this deal, LIC will have a strategic investment in a large bancassurance channel, thereby increasing its productivity and reducing distribution costs,” a statement issued by the bank said. More than 1,800 branches of IDBI Bank can be used as touch points for selling LIC policies.