New Delhi, June 30: Congress has accused Modi government of rubbing salt on the Savings of LIC Policy Holders by compelling LIC to buy 50% stake in a loss-making IDBI bank and asked: “Is government planning to ask the LIC to bailout other six public sector banks”?
Targeting the Modi government ruining the Aam Aadmi’s earning, Congress national spokesperson Priyanka Chaturvedi said “Squeezing the hard-earned savings of the common people is the sole motto of the Modi Government and is attacking the common people at multiple fronts”.
Panelist Professor Gaurav Vallabh said, “Financial tricks are being used by Modi government to achieve this years’ disinvestment target of Rs 80,000 Crore – using LIC for IDBI Bank , since the Air India ‘Sell off’ completely flopped.Such Financial Tricks by Modi Govt will only create a Bigger Problem and our Economy shall suffer!”
“Secondly, if it had continued to own IDBI Bank, it would have had to continue providing capital to a loss-making bank, in the future.”
Listing out legal points that indicate flouting of rules , panelist Professor Gaurav Vallabh targeted the Narendra Modi government over the approval given by the IRDAI to LICs plan to buy 51 per cent stake in debt-ridden IDBI Bank and alleged that “it was destroying regulatory mechanism because as per law, LIC cannot invest more than 15% in IDBI.”
Vallabh said, “Both IDBI Bank and LIC own mutual fund arms, which too are not allowed under the SEBI rules.”
“Therefore, financial tricks are being used to save the banks.Given that Banks are under immense stress. Gross NPA’s are soaring to ₹10.3 Lakh Cr. The equity holding of LIC will see value erosion.How will Modi Govt tackle that? “, Vallabh said.
The board of the Insurance Regulatory and Development Authority of India, which met on Friday, has approved Life Insurance Corporation’s (LIC) proposal to increase its stake in troubled state-run lender IDBI Bank.
Beleaguered IDBI Bank getting ₹9,000 crore in equity investment from Life Insurance Corp of India may be a lifeline for the lender