LIC to stay invested in IDBI Bank and rules out complete exit
While LIC India will continue to stay invested in IDBI Bank, it will do so at a reduced stake. The life insurance industry is facing headwinds due to rising interest rates and an increase in discretionary spending, but risk perception has improved since the moderation of COVID-19. Nonetheless, the next year will still be a challenge for the industry.
Life Insurance Corporation of India (LIC India) plans to stay invested in IDBI Bank but will reduce its holding which is at 49 percent currently, said Raj Kumar, Managing Director of the company in an interview with CNBC-TV18.
On January 9, 2023, Department of Investment and Public Asset Management (DIPAM) Secretary Tuhin Kanta Pandey, in an exclusive interview with CNBC-TV18, said with respect to the holding of the Union government and LIC in the bank, both would eventually want to make an exit.
In total, the government and Life Insurance Corporation (LIC) hold 94.71 percent stake in the bank, and the successful bidder will have to make an open offer to acquire a 5.28 percent stake from public shareholders.
LIC has told CNBC-TV18 that it plans to hold on to 19 percent in IDBI Bank. Kumar also discussed the challenges facing the life insurance segment, highlighting that an increase in discretionary spending and rising interest rates are affecting the industry. However, he noted that risk perception has gone down after the moderation of COVID-19.
Despite this, Kumar stated that the next year is also going to be challenging for the industry due to a higher base.
He said, "Next year it will be a challenge for the industry because the base is getting bigger and bigger, and giving growth over that itself becomes a challenge. But we have our strategies in place and we believe that we will be able to sustain a high rate of growth in the future.”
The company reported total annualized premium equivalent (APE) growth of 5 percent and total premium growth of 4 percent versus last year.
For the entire interview, watch the accompanying video
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Prajwal Revanna's father in custody for alleged kidnapping and sexual abuse
May 4, 2024 7:53 PM
Delhi, Indore, Surat and Banswara — why these are the most challenging domains for Congress internally
May 4, 2024 1:53 PM
Congress nominee from Puri Lok Sabha seat withdraws, citing no funds from party
May 4, 2024 12:00 PM
Lok Sabha Polls '24 | Rahul Gandhi in Rae Bareli, why not Amethi
May 4, 2024 9:43 AM