The Cabinet approved a capital infusion plan worth Rs 9,300 crore for IDBI Bank.
The Cabinet cleared the IDBI Bank recapitalisation plan with a one-time infusion of funds by the government and Life Insurance Corporation (LIC), Union Minister Prakash Javadekar said. The recapitalisation plan will put IDBI Bank 'in the front foot to take the normal banking activities to the next level'.
"The government will provide a one-time recapitalisation of Rs 4,557 crore to IDBI Bank", Javadekar said, adding that LIC will infuse Rs 4,743 crore.
The minister reiterated that as part of the Budget 2019-20, the government provided a support of Rs 70,000 crore for recapitalisation of public sector banks.
LIC has a 51 per cent share in IDBI Bank, whereas the remaining 49 per cent stake is with the government.