As confirmed by sources, the proposal by IDBI Bank to change its name recently failed to find any favour by the RBI (Reserve Bank of India). The IDBI Bank Board proposed last month that it would want to change its existing name to either LIC bank or LIC IDBI Bank given the fact that it has recently been taken over by the Life Insurance Corporation.
As per sources, the RBI isn’t in favour of the change of name for the bank. The board initially proposed the name LIC IDBI Bank Ltd for its first preference and second option to be LIC Bank Ltd. Besides RBI, any change in the name would require a clearance acquired from Ministry of Corporate Affairs, stock exchanges, shareholders, and many others.
In the month of January, the popular LIC behemoth completed its acquisition of a total of 51 percent stake in the IDBI Bank. This marked the entrance of a 60-Year-Old insurance company into banking space. Last year in August, the Cabinet finally approved acquisition of the controlling stake held by LIC.
For long, LIC was looking for a chance to enter banking sector with acquisition of major stake in the IDBI bank.