New Delhi: The Union Cabinet on Tuesday cleared the recapitalisation of IDBI Bank with a one-time infusion of Rs 9,000 crore by both government and Life Insurance Corporation. The government said that it would help both IDBI and LIC to improve their financial health.
The government move came after Finance Minister Nirmala Sitharaman last month announcing a slew of measures, including an upfront capital infusion of Rs 70,000 crore, to help the public sector banks.
Addressing the media, Information and Broadcasting Minister Prakash Javadekar said, “The government approved an infusion of Rs 9,000 crore fund for recapitalisation of IDBI Bank, out of which LIC would meet 51 per cent of Rs 4,743 crore and the remaining 49 per cent of Rs 4,557 crore is proposed from the government as its share on one-time basis.”
