IDBI rises 3% as LIC asked to consider exiting its stake

Mumbai: Shares of IDBI Bank rose nearly 3 per cent on Friday morning, after a senior government official said state-run Life Insurance Corporation of India (LIC) is asked to consider exiting the lender along with the government.

At 9:56 am, IDBI Bank was up 2.71 per cent at Rs 41.70, while benchmark Sensex climbed 0.52 per cent at 46,198.47 points.

“LIC will take a call on its stake. We are asking them to seriously consider,” Financial Services Secretary Debashish Panda told ET in an interview.


“It makes more sense that they disinvest as then a big chunk would be available for a potential investor,” he added.
The country’s largest institutional investors LIC had a 51 per cent stake in the bank as of September 30, while the government had 47.11 per cent.

Panda said LIC’s board will decide whether they would like to go along with the government in the entire process or they will do it later or earlier.