Is it true that LIC may not sell out of IDBI Bank entirely?

That is what it looks like based on the recent statements coming from the LIC chairman, M R Kumar. Speaking about the reasonableness of valuations of LIC and the returns for investors on the table, Kumar also added that they may look to retain some stake in IDBI Bank. Between the government and LIC, they own 94.72% in IDBI Bank of which the government owns 45.48% and LIC owns 49.24%. The original plan was that both will sell their stake fully.

However, now LIC has indicated that it may not sell its entire stake in IDBI Bank and may retail some stake to leverage the bank’s massive network of branches to market its insurance products and solutions. IDBI Bank, as of the end of last calendar year, has a network of over 1,800 branches in India and assets of $39 billion. Continuing part of the government / LIC stake may also give comfort to lenders and customers of IDBI Bank.