Life Insurance Corporation of India (LIC), a state-owned insurance group, has concluded the purchase of a 51% stake in IDBI Bank, a debt-ridden state-owned lender.

The deal is said to be mutually beneficial, offering IDBI access to over one lakh staff and 11 lakh agents of LIC.

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On the other hand, it will enable LIC staff and agents to access value-added banking services.

Through the deal, more than 1800 IDBI branches can be used as touch points for sale of LIC policies. Besides, over 900 of the bank branches can be used for settlement of payments via NEFT.

Moreover, the lender will extend its cash management facility to the insurer.

The companies expect “significant revenue synergies” through the transaction.

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In a BSE filing, IDBI said: “The deal, conceptualised in June 2018, is envisaged as a win-win situation for both IDBI Bank and LIC with an opportunity to create enormous value for shareholders, customers & employees of both entities through mutual synergies.

“The transaction promises a paradigm shift for both partners, creating for the first-time a unique financial conglomerate in India.

“LIC and IDBI Bank are two of the most trusted brands in the country. Strong together, they bring the convenience of banking and insurance services under one window for all their customers.”