New Delhi: The Life Insurance Corporation said on Monday that it has got its subsidiary LIC Housing Finance Limited. (LICHFL) has no proposal to merge with any other entity.
This statement of LIC came after reports in some reports. It states that the insurance company LIC Housing Finance can merge its bank entity IDBI.
Life Insurance Corporation of India (LIC) stated in the clarification, “In fact there is no proposal of merging LIC Housing Finance into any other entity. Whatever is rumored in the market is not based on facts. “
IDBI Bank clarified in a separate notice that no such proposal has been discussed in the Board of Directors meeting. Following this news, the stock of LIC Housing Finance broke over 10 per cent on the BSE in day trading. It finally ended at Rs 380.30, down 7.71 percent.
IDBI shares also fell 2.54 per cent to Rs 34.50. LIC holds 51 percent stake in IDBI Bank. The bank’s net loss on a single basis increased to Rs 5,763.04 crore for the quarter ended December 2019. Earlier, the bank had a net loss of Rs 4,185.48 crore in the same quarter of the financial year. The bank’s losses have increased mainly due to increase in bad loans.