January 22, 2019

All Employees
IDBI Bank Ltd

Dear All,
Communication – Developments in IDBI Bank Ltd

All of you must be aware that LIC has completed acquisition of 51% stake in
IDBI Bank on 21st January 2019, making it the majority shareholder of the Bank. This
marks an important milestone in the Bank’s journey as it will help the Bank to build a
strong base for its future. This capital infusion by the largest Government financial
institution is aimed at not only taking significant steps to bring our Bank out of RBI
framework of Prompt Corrective Action (PCA), but also to strengthen and bring in
long term stability to the Bank’s growth. I am quite confident that this capital infusion
shall prove to be beneficial for all stakeholders, including all of you.

Let me outline a few of the synergies which are beneficial to both our Bank and
LIC. First and foremost, both the entities will gain in terms of outreach to customer
base and access to our Bank’s retail branches with a fairly large complement of
customers. Similarly our Bank will reach out to around 28 crore policy holders of LIC
and will be in a position to take advantage of newer avenues of retail business growth.
Further, our Bank can not only position itself as preferred bank for LIC premium
payments but also function as premium points to boost sale of LIC products thereby
gaining from fees and float income. On the asset front, we can potentially tap the
employees, agents, subsidiaries and policyholders of LIC to sell our retail loan
products.

Let me also dispel some of the concerns and apprehensions revolving around
LIC taking majority stake in IDBI Bank. First and foremost, there will be no job loss
to the employees. As and when the Bank starts to turnaround, there would be scope
for further incentivizing better performance.
 I must also put on record that majority stake acquisition by LIC will serve to
enhance our Bank’s brand value. It would be indeed a matter of great pride for all of
us to be a part of the large and trusted brand network of LIC. The deal is a win-win for
LIC as well as IDBI Bank, which would facilitate improved market presence and
share.

We need to be, therefore, responsive to the emerging opportunities before us

and strive to maximize the gains out of them. There is immense potential available
before us which would help our Bank’s transition to a position of long-term sustained
and profitable growth. We need to adopt positive marketing approach to mobilise
CASA and retail deposits, as also focus on recovery of NPAs. The need of the hour is
for all of us to come together, put our best efforts and facilitate Bank’s turnaround so
as to make it a preferred, trusted and amongst the best in class financial institution.

With all wishes for prosperity of the Bank and its employees.

Rakesh Sharma
MD & CEO