RBI places IDBI Bank in 'private' lender category
Mumbai: IDBI Bank has been categorised as a private sector lender following acquisition of majority stake by Life Insurance Corporation, RBI said.
In January, LIC completed the process of picking up a controlling 51 per cent stake in the nearly crippled IDBI Bank.
"IDBI Bank has been categorised as a 'private sector bank' for regulatory purposes by Reserve Bank of India with effect from January 21, 2019 consequent upon LIC acquiring 51 per cent of the total paid-up equity share capital of the bank," RBI said in a statement.
IDBI Bank has been under the prompt corrective action framework of RBI that bans it from corporate lending and branch expansions, salary hikes and other regular activities.
However, the lender has charted out a revival strategy to bring banking and insurance under one roof, along with its new owner Life Insurance Corporation (LIC).
Last week, IDBI Bank informed about appointment of LIC as a corporate agent under bancassurance