25 June 2018
According to news reports, the Life Insurance Corp of India (LIC) will now buy shares in IDBI Bank from the government of India. Logically the price should not exceed one rupee for the entire lot (one rupee so that there is some accounting entry possible). Of course, if wound down, the government would have to pump in a few thousand crores to cover the depositors and lenders to IDBI Bank. In an election year, it may not be a good thing. So, LIC will add one more dud investment.