Banking regulator the Reserve Bank of India (RBI) has turned down IDBI Bank’s proposal to change its name post the transfer of its 51 percent stake to insurance giant LIC from the government of India.
Last month, the bank’s board had sought RBI’s approval for change of its name to LIC IDBI Bank or LIC Bank following the takeover by Life Insurance Corporation (LIC).
“The board of directors has in its meeting held on March 19, 2019, taken note of RBI’s communication conveying their inability to accede to bank’s request for change of name of IDBI Bank Limited,” said IDBI Bank.
The lender did not give details on the RBI’s denial for name change.
Earlier this month, the central bank changed the categorisation of IDBI Bank to a private sector lender from public sector lender following acquisition of majority stake by LIC.
As a result of the stake transfer, the Centre’s holding came down to 46.46 percent from nearly 86 percent in September 2018, while LIC’s stake inflated from about 8 percent to 51 percent earlier this year.
The insurance giant completed the acquisition of 51 percent controlling stake in IDBI Bank in January.