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IDBI Bank starts retail assets operation unit at Hindustan Building

According to its officials talks are on to move its Esplanade branch and business support units to the existing premises of LIC
IDBI Bank is the strongest contributor to LIC’s bancassurance channel and retaining the arrangement will help the insurer to grow the channel even after the bank’s privatisation.
IDBI Bank is the strongest contributor to LIC’s bancassurance channel and retaining the arrangement will help the insurer to grow the channel even after the bank’s privatisation.
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A Staff Reporter   |   Calcutta   |   Published 10.03.22, 03:36 AM

IDBI Bank on Wednesday said it has relocated one of its branches in Calcutta and has started a retail assets operation unit at Hindustan Building, which houses the zonal office of LIC — indicating a consolidation of operations even as the Centre looks at a strategic sale in the bank.

LIC chairman M.R. Kumar had earlier said the IPO bound insurer will retain some stake in the bank.

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IDBI Bank is the strongest contributor to LIC’s bancassurance channel and retaining the arrangement will help the insurer to grow the channel even after the bank’s privatisation. Bancassurance along with online sales have emerged as key contributors to the sale of insurance policies during the Covid period.

IDBI officials said the discussions are on to move the bank’s Esplanade branch and business support units to the existing premises of LIC.

Suresh Khatanhar, deputy managing director, IDBI Bank, said the move is in sync with the realignment of the bank’s business strategy and vision to be a retail oriented bank. The operations at Hindustan Building have started from March 5, 2022. The retail assets operation unit will primarily deal with home loans.

IDBI Bank became a subsidiary of LIC in January 2019, when the insurer bought a 51 per cent stake. In December 2020, the lender was re-classified as an associate company because of the reduction of LIC shareholding to 49.24 per cent following a qualified institutional placement.

According to data from Reserve Bank of India, IDBI Bank held a total of 111 branches in Bengal as of December 2021.



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