Life Insurance Corporation (LIC) has said there is no proposal to merge its subsidiary LIC Housing Finance Ltd (LICHFL) with any other entity.
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LIC stated that there was absolutely no proposal to merge LICHFL with any other entity and all such rumours floating in the market are not based on facts.
There were such fake news that insurance company LIC might expedite the process of merging LICHFL with its banking arm IDBI Bank.
IDBI Bank also clarified in a separate filing that no such proposal has been discussed in its board meeting.
IDBI Bank, in which LIC holds 51 % stake, had reported widening of its standalone net loss to Rs 5,763.04 crore due to higher bad loans. The lender had posted a net loss of Rs 4,185.48 crore during the corresponding October-December period of the previous fiscal year.
The bank witnessed high proportion of bad loans, with gross non-performing assets (NPAs) at 28.72 per cent of the gross advances at end of December 2019, little lower than 29.67% in the corresponding period of the previous fiscal.