LIC, Govt To Infuse Rs 9,000 Crore In IDBI Bank
New Delhi: The Union Cabinet on Tuesday approved over Rs 9,000 crore capital infusion in IDBI Bank with a view to increasing the lender’s capital base.
The Union Cabinet has cleared recapitalisation of IDBI Bank with a one-time infusion of funds by both the government and the LIC, Information and Broadcasting Minister Prakash Javadekar told reporters here.
Out of Rs 9,000 crore, the government will provide Rs 4,557 crore as one-time re-capitalisation to IDBI Bank, he said.
Besides, he said, LIC will infuse Rs 4,700 crore to increase the lender’s capital base.
Notably, the stressed IDBI Bank, which reported a net loss of Rs 3,800 crore in the first quarter, was put on credit watch by ratings agency S&P Global last month.