It refers to public-sector LIC of India proposing acquiring 51-percent stake in public-sector IDBI Bank which is presently is not doing well. Even there were talks of making IDBI Bank again a financial institution doing away with retail-banking. But this is certainly a better remedy that LIC of India enters retail banking by having major holding in IDBI Bank.
Such a step can provide a single window to customers for banking and insurance, which may make IDBI Bank with managing control of LIC of India, a favorite choice for banking. Such managing control of LIC of India in IDBI Bank can result in huge fund-saving for LIC of India if properly planned. Every branch of IDBI Bank then be automatically become a branch of LIC of India also where business of nearing branches of LIC of India can be transferred. Presently it is observed that LIC of India has too many branches with even some branches located in the same premises.
LIC of India rather should go for a mega-merger plan for its nearing branches which will save huge because of saving on rent, salary-bill and other overheads. Plan of LIC of India having major controlling share-holding in IDBI Bank needs urgent implementation in interest of all concerned including customers of LIC of India and IDBI Bank.
MADHU AGRAWAL