Page 38 - LIFE INSURANCE TODAY Novemver 2017

Life Insurance

Corporation NewsNews
News
News
News

LIC arm files insolvency suit against DB Realty LIC hikes stake in Dena
LIC Housing Finance (LICHF) has filed an application at the National Company
Law Tribunal (NCLT) to initiate insolvency proceed- Bank
ings against DB Realty. The developer, in a notice
to the stock exchange, said that the matter is
pending in the NCLT and settlement talks are on
between LICHF and DB Realty.
The application pertains to a Rs 200-crore loan
availed by DB Realty from LICHF in 2010. Out of
the sanctioned loan, Rs 188 crore was disbursed by LICHF. "Of the disbursed
sum, Rs 157.4 crore was repaid by DB Realty to LICHF within 18 months from
the date of disbursement. The balance loan outstanding is nearly Rs 31 crore," LIC has acquired an over 4.5 per
said DB Realty. cent stake in public sector lender
Dena Bank in preferential allotment
DB Realty fell over 7% in intraday on Thursday as investors turned wary of the
stock on the back of insolvency proceedings reports. On Friday, the share closed of shares over a period of nearly
flat at Rs 34 marginally higher than its intraday low of Rs 33. three months to mid-September.

DB Realty was founded in 2006 as a joint venture between two developers - LIC, the countrys largest and the
Vinod Goenka of the Dynamix Group and Shahid Balwa of the Balwa Group. In only state-owned life insurer,
the first quarter of FY18, the company reported a net loss of Rs 1.5 crore as bought nearly 4.52 per cent shares
against loss of Rs 88 lakh in the corresponding quarter last year. in Dena Bank in a period between
May 23 to September 18, the bank
The company's annual report for FY17 said that as on March 31, 2017, DB Re-
said in a regulatory filing.
alty had defaulted on a Rs 13.5-crore loan to Reliance Capital since January
2017. It has also failed to pay Rs 2.2 crore principal due to ICICI Bank and an- The equity sale to LIC was done
other Rs 32 lakh to Indiabulls Housing Finance since March 2017. through a preferential allotment of
shares. The stake buy by LIC is
Government appoints retired officials on public equivalent to 44,865,702 shares.
insurer's boards Prior to this additional stake pur-

The Central government has inducted some retired officials from the public chase, LIC held over 9.73 per cent
sector insurance companies into the boards of Life Insurance Corporation, New (96,705,466 shares) stake in Dena
India Assurance (NIA), National Insurance Company, United Insurance Company, Bank.
Oriental Insurance Company and GIC Re.
Thus, the current shareholding in
"The Appointments Committee of the Cabinet (ACC) has approved the proposal
Dena Bank by LIC has increased to
of the Department of Financial Services for appointment of 15 persons as non- over 14.25 per cent, representing
official directors on the board of public sector insurance companies for a pe- 141,571,168 shares, showed the
riod of three years from the date of notification of their appointment, or until regulatory filing.
further orders," said a note from the finance ministry issued recently.

38 November 2017 Life Insurance Today

Sashi Publications Pvt Ltd Call 8443808873/ 8232083010