The Indian Wire » Business » LIC to infuse ₹12,000 Crore in IDBI bank to help bank in NPA and provisions
Banking Business

LIC to infuse ₹12,000 Crore in IDBI bank to help bank in NPA and provisions

Life Insurance Corporation (LIC) may infuse fresh capital of around 12,000 Crore to help meet the private lender in its mounting Non Performing Assets (NPA) and provision requirements. LIC has a controlling stake of 51% in IDBI Bank.

Recently in its third quarter report, the bank reported a three fold rise in its losses with net loss mounting to 4,185 Crore. Also the income in third quarter decreased from 7,125.20 Crore to 6,190.94 Crore.

Similarly, Gross NPA of IDBI Bank increased to 29.64% from the earlier 24.72% in the corresponding quarter of the previous year .As a result the of this, the provisions for the quarter third of current fiscal rose to 5,074.80 Crore, compared to 3,649.82 Crore in the Q3 FY18.

Thus the mounting bad loans and rising provision has necessitated the need for the fresh capital infusion by the LIC. IDBI has the highest NPA and last year got maximum- 10,610 Crore from the central bank for the maintenance of regulatory capital.

In January this year LIC became the largest stakeholder in IDBI Bank by acquiring 51% stake.

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