IDBI Bank comes off 7% as officers plan stir

NEW DELHI: Panic gripped IDBI Bank stock as it tumbled over 7 per cent on Friday on news that a section of officers would go on strike.

The planned agitation is slated for July 16-21.

In a filing to the BSE, the bank said: "The bank has received notice from a section of officers that they propose to go on strike from July 16, 2018, to July 21, 2018."


The decision to strike work was taken at a time when LIC is preparing to complete 51 per cent acquisition of the debt-ridden bank by September-end.

The stock fell 7.19 per cent to hit a low of Rs 52.25 on the BSE early on Friday.

If the deal goes through, LIC will get close to 2,000 branches by which it can sell its products while the bank would get massive funds of LIC.

The bank would also have access to accounts of nearly 22 crore policy holders and subsequent flow of funds.

Proceeds from the stake reduction may stay off-limits for the government as the money would be utilised for the bank's revival.

LIC has been looking to enter the banking space by acquiring a majority stake in IDBI Bank as the deal is expected to provide business synergies despite the lender's stressed balance sheet, according to a PTI report.