Sunday 2 December 2018

LIC, kindly reveal the statistics pertaining to repudiated arrears too!

Source: m.economictimes.com 

2017-18

By IANS | 
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LIC received cabinet approval earlier this year to buy 51 per cent stake in state-run IDBI, which will make the government a minority shareholder in the bank.
MUMBAI: LIC Chairman V.K. Sharma on Friday handed over a cheque of Rs 2,430 crore as dividend for financial year 2017-18 to Finance Minister Arun Jaitley.

Speaking to reporters here after meeting the Finance Minister, Sharma said that state-owned Life Insurance Corporation (LIC) recorded a surplus of Rs 48,444 crore during the the last fiscal 2017-18.
He said that LIC would also infuse Rs 15,000-20,000 crore into the loss-making IDBI Bank struggling with accumulated bad loans.

LIC received cabinet approval earlier this year to buy 51 per cent stake in state-run IDBI, which will make the government a minority shareholder in the bank.

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IN THE LIGHT OF THE ABOVE-MENTIONED REPORT, OUR HUMBLE REQUEST TO LIC:

KINDLY REVEAL THE STATISTICS PERTAINING TO THE WAGE REVISION ARREARS DUE TO THE RESIGNING EMPLOYEES, SINCE 1997; ILLEGALLY REPUDIATED BY YOU!

WHY CAN'T YOU PLAY FAIR AND HONOUR YOUR COMMITMENT TOWARDS US TOO, BY GIVING US OUR DUES?

SURELY, YOUR SURPLUS OF Rs. 48,444 CRORES WOULD BE MORE THAN ENOUGH TO DO SO!

THANKS IN ANTICIPATION. 
                                                  RESIGNING EX-EMPLOYEES 
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Sunday 18 November 2018

LIC - IDBI deal

Source: m.economictimes.com

News

LIC makes open offer to buy 26% more in IDBI Bank for Rs 12,600 crore

By PTI | 
Union Cabinet on August 1 cleared a proposal for purchase of 51 per cent controlling stake in IDBI Bank by LIC.
LIC on Thursday came out with an open offer for acquiring 26 per cent of equity inIDBI Bank at a price of Rs 61.73 per share, entailing total payout of over Rs 12,602 crore.

Earlier in the day, the IDBI Bank board approved the proposal for issuance of preferential shares in favour of LIC with a view to increase the share of insurer in the bank up to 51 per cent.

LIC made a public announcement for the open offer to shareholders, including retailers, as per the Sebi’s regulations with regard to substantial acquisition and takeover of shares in a company.

 According to the open offer, LIC proposes to acquire more than 204 crore equity shares of Rs 10 each, equivalent to 26 per cent equity of IDBI Bank.


The board of IDBI Bank approved the preferential allotment of equity shares to LIC aggregating up to 51 per cent of post issue paid up capital of the bank, IDBI Bank said in a regulatory filing. At a price consideration of Rs 61.73 per equity, assuming full acceptance under the offer for 2,041,512,929 shares (or 26 per cent), the total payable by the acquirer (LIC) will be Rs 126,022,593,107, IDBI said in its latest filing on behalf of LIC.

The offer price will be paid in cash.

“The board of directors of the target company (IDBI Bank) in their meeting held on October 4, 2018 have authorised the preferential allotment representing up to 51 per centof the fully diluted voting share capital (preferential issue) in favour of the acquirer (LIC) along with the acquisition control,” it said in the filing.

The government has already approved the proposal of LIC to increase the stake in IDBI Bank.

IDBI Bank board today also approved increasing authorised capital of the bank from Rs 8,000 crore to Rs 15,000 crore.

The meeting also cleared a proposal for re-classification of LIC as promoter of the bank post acquisition of 51 per cent stake in IDBI Bank, it said.

The board also approved alterations in Articles of Association of the bank.

Union Cabinet on August 1 cleared a proposal for purchase of 51 per cent controlling stake in IDBI Bank by LIC.

The bank, in which the government holds 85.96 per cent stake, had posted a net loss of Rs 2,409.89 crore in June quarter of this fiscal. It had gross non-performing asset(NPAs) of about Rs 57,807 crore.

The board of Insurance Regulatory and Development Authority of India (Irdai) in June permitted LIC to increase its stake from 10.82 per cent to 51 per cent in IDBI Bank.

As per current regulations, an insurance company cannot own more than 15 per cent stake in any listed financial firm. LIC has been looking to enter the banking space by acquiring a majority stake in IDBI Bank as the deal is expected to provide business synergies despite the lender’s stressed balance sheet.

With culmination of the deal, LIC will get about 2,000 branches by which it can sell its products, while the bank would get massive funds of LIC. The bank would also get accounts of about 22 crore policy holders and subsequent flow of fund.


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Friday 26 October 2018

LIC holds more than mandated 15% stake in banks and companies

Source: m.economictimes.com

Government wants LIC to be more vigilant on governance issues.
By Dheeraj Tiwari, ET Bureau Oct 04, 2018
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News

Govt wants LIC to be more vigilant on governance issues

By , ET Bureau | 
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LIC holds stake of more than 15% in at least 40 companies, including state-run banks.
NEW DELHI: The government wants state-owned Life Insurance Corporation of India (LIC) to play a more active role in companies where it is a major shareholder, following developments at Infrastructure Leasing & Financial Services Ltd.

LIC, with an over 25% stake in IL&FS, is the biggest shareholder in the infrastructure financier, which has defaulted on its debt obligations. The government sacked members of the IL&FS board on Monday and appointed six new directors in a bid to restore the company’s credibility and stem any contagion from spreading in the markets. A senior finance ministry official said the country’s largest insurer cannot be a silent shareholder.

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“They need not be aggressive, but at least keep a close watch on corporate governanceissues,” the official said. In the case of IL&FS, the insurer was caught totally unawares, the official said.

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LIC appoints nominee directors on the boards of companies in which it has a substantial stake by way of debt and/or equity. The insurer had two nominee directors on the IL&FS board.

“Nominee directors provide feedback with regard to operations, problems, prospects and corporate governance standards,” LIC said in its 2017-18 annual report. Last week, after the crisis at IL&FS, LIC promised all support to the embattled lender.

“We will ensure IL&FS does not collapse. We will not allow contagion to spread from IL&FS,” LIC chairman VK Sharma had said, adding that all options were open, including increasing the insurer’s stake in the debt-laden company, to help it overcome a liquidity shortfall.

“They have a responsibility and as a public sector institution they should bring to notice any deviances in a firm where they are a shareholder,” said another official aware of the developments. Some former IL&FS board members have blamed LIC for inaction.
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According to various reports, LIC holds stake of more than 15% in at least 40 companies, including state-run banks. The Insurance Regulatory & Development Authority of India has relaxed for LIC — in some cases — a norm that restricts insurers from holding more than a 15% stake in a company.

LIC holds 16.18% in ITC Ltd. and 17.57% in Larsen & Toubro. In June, the insurance regulator allowed LIC to buy a 51% stake inIDBI Bank for Rs 10,000 crore-12,000 crore. The insurer had over Rs 30 lakh crore of assets under management, including Rs 5.74 lakh crore in equity and Rs 19 lakh crore in debt.

On Monday, the National Company Law Tribunal approved the takeover of the IL&FS board by government nominees under Article 241 of the Companies Act. It ruled that the government can appoint six directors to replace existing members of the board. 

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