Life Insurance Corporation is keen to unlock value in IDBI Bank in the run-up to the insurance behemoth’s IPO, which is likely to happen in the current financial year, its chairman M. R. Kumar said on Friday.
In January 2019, LIC picked up a 51 per cent stake in IDBI Bank, making it the majority shareholder of the lender.
Kumar said though the insurance regulator has not fixed any timeline for LIC to reduce its stake in IDBI Bank, the RBI has given a 12-year timeframe.
“We would not want to wait that long, especially when we are also going to be listed, but we have to find some ways to unlock value in IDBI Bank,” Kumar told reporters on Friday.
He said once the bank came out of the lending restrictions imposed by the RBI under the prompt corrective action framework and became profitable, the bank would be able to attract investors.