IDBI Bank develops plan to bring insurance and banking services under a single platform

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IDBI Bank recently announced that it is charting out a plan to bring its insurance and banking services under one platform. IDBI Bank recently became a private sector entity, after Life Insurance Corporation of India (LIC) acquired a majority stake in the bank.  

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IDBI Bank has begun to chart out a plan to offer both its insurance services and banking services under one platform.

The bank mentioned in a recent release that the required business enablers are being put in place to offer its customers the convenience of accessing both insurance and banking services through a one-stop platformIDBI Bank said that such strategic initiatives would result in better financing and improved operations, which would, in turn, aid in wealth maximisation for the current stakeholders of the bank, which include the government and LIC.  

A few other important areas that have been identified as part of the bank’s strategic plan include selling insurance policies of LIC through the bank branches of IDBI, managing cash and premium receipts of Life Insurance Corporation of India, and enabling the required technical wherewithal to offer online solutions to customers of IDBI Bank and LIC.  

The release issued by the bank further stated that LIC has been appointed as a corporate agent under bancassurance. The bank’s board has approved of this appointment. To this end, the current chairman of Life Insurance Corporation of India has been appointed as IDBI Bank’s non-executive chairman.  

IDBI Bank also stated that it is considering extending Mr. Rakesh Sharma’s tenure for an additional three years. Mr. Sharma serves as the current managing director of the bankThe new board has also appointed two new independent directors. Furthermore, IDBI Bank will be appointing two new deputy managing directors. 

The new board of IDBI Bank will be given the responsibility of creating a new growth strategy and revamping the present structure of corporate governance. The bank also announced that it has begun reviewing its various policies including investment, credit, risk management practices, and its internal processes with the aid of consultants.  

joint task force, which will be chaired by senior professionals of LIC and IDBI Bank, has been constituted to develop a future roadmap for the bank and for its associate firms. A working group has also been formed to carry out the initiatives that are identified for synergy and also to implement the various decisions that are taken by the management.  

Source: Business Today, The Times of India 

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