Await LIC proposal on IDBI Bank stake cut timeline: IRDAI

Insurance regulator Irdai is awaiting state-run LIfe Insurance Corp`s (LIC) proposal on the timeline of reducing its stake of 51 per cent in IDBI Bank before taking any decision to enforce the 15 per cent equity cap, a senior official said on Monday.

"We will decide on the timeline. We are not leaving it to them. I have asked them to give a proposal and after that we will take a decision," said Irdai Chairman Subhash Chandra Khuntia, on the sidelines of a health insurance event organised by Ficci. 

As per Irdai rules, LIC will have to pare its stake to 15 per cent keeping in place the regulator`s investment limit in listed investees. In IDBI Bank, LIC holds 51 per cent under a specific permission from Irdai but under the condition state-run insurance behemoth will bring the stake down. 

Not just Irdai, the Reserve Bank of India (RBI) has also told LIC that it cannot hold more than 15 per cent stake in IDBI Bank over a long period of time. IDBI Bank also has to move out of its IDBI Federal Life Insurance interest. As per Irdai norms, one promoter cannot have two insurers, in order to avoid conflict of interest. 

"No action from our side. They themselves are planning to get out of the JV. Because of this issue of LIC taking over that has come to standstill. They will do it and inform us also," Khuntia said. 

Earlier, Indu Bhushan, chief of Ayushmaan Bharat, said in 170 days since its launch, the Centre`s health protection scheme has benefited 15 lakh people and Rs 2,000 crore has been spent. Of the 15 lakh beneficiaries, 10 lakh have used private sector facilities, while 75 per cent of spending has been for tertiary treatments.