Homefinance News

    LIC may acquire IDBI Bank's real estate assets, says report

    LIC may acquire IDBI Bank's real estate assets, says report

    LIC may acquire IDBI Bank's real estate assets, says report
    Profile image

    By CNBC-TV18  IST (Updated)

    Mini

    IDBI Bank’s real estate assets, including properties at Cuffe Parade, the Bandra Kurla Complex and Worli in Mumbai, are likely to be a part of the stake sale with Life Insurance Corporation of India (LIC),The Economic Times reported.

    IDBI Bank’s real estate assets, including properties at Cuffe Parade, Bandra Kurla Complex and Worli in Mumbai, are likely to be a part of the stake sale with Life Insurance Corporation of India (LIC), The Economic Times reported.
    It is also considering the sale of the assets before the LIC is offered a controlling stake in the debt-laden bank.
    “A separate entity may be spun off to manage the properties of IDBI Bank,” senior officials told the paper, adding that LIC approached the government with an offer to acquire the lender and not the other way around.
    LIC is likely to have the option of acquiring the properties separately or get a stake in the entity that will hold the physical assets proportionate to the holding it purchases in the lender, the report said.
    “This is an acquisition by LIC and not a bailout... LIC was keen to have a bank like its private competitors,” sources told the paper, adding that the government has only responded to LIC's approach.
    If the real estate assets are not included, the price will be much more affordable for the life insurer, the report said.
    The acquisition is most likely to be through a fresh infusion of capital in the bank. However, a combination of the above-mentioned and a stake sale is also possible, sources told the ET.
    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!
    arrow down

      Most Read

      Market Movers

      View All
      CompanyPriceChng%Chng