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The government needs a bigger lifeboat than LIC to rescue IDBI Bank

Updated : June 28, 2018 07:26 AM IST

Apart from the basic flaw in treating the LIC as a piggybank, the idea has wider repercussions of spreading the contagion of NPAs into the largest life insurance company.
This is dealing with insurance cover and life savings aggregating to a one-time full risk equity infusion of Rs 1 lakh crore obtained from the majority of Indians.
Instead of seeking the fund infusion only from LIC, the government should consider the option of government guaranteed tax-free bonds that are subscribed by entities across the spectrum of profitable PSUs.
The government needs a bigger lifeboat than LIC to rescue IDBI Bank

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