IDBI Bank's proposal to change its name was not accepted by the Reserve Bank of India, sources said. IDBI Bank's board of directors last month proposed changing the name of the lender to one of LIC IDBI Bank or LIC Bank banks following its takeover by Life Insurance Corporation. According to sources, the RBI is not in favor of the IDBI Bank name change. The council had proposed as a first preference LIC Bank IDBI Bank Ltd, followed by Bank LIC Ltd.
In addition to the RBI, the name change requires authorization from the Department of Corporate Affairs, shareholders, stock exchanges, among others. In January, the insurance giant, LIC, finalized the acquisition of 51% of the control of IDBI Bank, thus marking the entry into the banking sector of an elderly public insurer. over 60 years old.
In August, the Cabinet approved the acquisition of a majority stake by Life Insurance Corporation (LIC) as the bank's promoter, through a combination of preferential allocation and public offering of shares. LIC sought to enter the banking sector by acquiring a majority stake in IDBI Bank, the transaction being expected to create commercial synergies despite the lender's difficult balance sheet.
For the third quarter ended December 2018, IDBI Bank saw its losses increase almost threefold to Rs 4,185.48 million due to the spike in bad debts. The bank recorded a net loss of Rs 1,524.31 million in the corresponding quarter of the previous year. Total income decreased to Rs 6,190.94 for the quarter, compared with Rs 7,125.20 for the corresponding quarter last year.