LIC merging IDBI Bank with LICHF has not been welcome by the markets… PSU banks with their past dubious track record of poor lending does not augur well for lichf seems the chorus view…
but could it be long term positive for lichf as it may help bring down its cost of capital though access to IDBI Banks high CASA. But RBI surely will put limits, already there are high level timelines that LICHF should bring down its shareholding by 2030 …
Also if its a share swap deal, is the market buying idbi bank instead of lich?