Financially troubled IDBI Bank is all set to receive Rs 9,000 crore bailout money from the centre.
Life Insurance Corporation has been seeking this infusion for the past several months.
While insurance giant LIC will have to pour in nearly Ra 4,500 crore as its share, centre will invest a matching contribution, reveal sources.
The money will be invested as part of the Rs 70,000 crore bank recapitalisation plan, of which over Rs 55,000 crore has already been diverted for the public lenders Punjab National Bank, Oriental Bank of Commerce and United Bank of India, the bank who are a part of the mega-merger announcement.
These public lenders will receive Rs 16,000 crore, according to initial estimates revealed on Friday.
Sources suggest that the fresh financial support to IDBI will help the lender to sail out from the financial crisis, owning to its massive pile -up of Non-Performing Assets (NPAs), estimated to be around 29 percent on June 30
Elets The Banking and Finance Post Magazine has carved out a niche for itself in the crowded market with exclusive & unique content. Get in-depth insights on trend-setting innovations & transformation in the BFSI sector. Best offers for Print + Digital issues! Subscribe here➔ www.eletsonline.com/subscription/
