SUMMER TRAINING REPORT

on

(Risk Management Analysis On Insurance Company)

( IDBI FEDERAL CO. LTD)

Submitted in partial fulfillment of the requirements

for the award of the degree of

Bachelor of Business Administration (BBA)

To

Guru Gobind Singh Indraprastha University, Delhi

Submitted by
Student Name: ShobhitNagpal
ROLL NO: 02320801717

Bhagwan Parshuram Institute of Technology

School of Business Administration
New Delhi -110089
Batch 2017 - 20

Certificate
I, Mr. Shobhit Nagpal , Roll No. 23 certify that the Summer Training Report (Paper Code
BBA 310) entitled “ Risk Management Analysis On Insurance Company” is done by me and
it is an authentic work carried out by me at IDBI FEDERAL CO. LTD. The matter
embodied in this Report has not been submitted earlier for the award of any degree or
diploma to the best of my knowledge and belief.

Signature of the Student

Date:

Certified that the Summer Training Report (Paper Code BBA 310) entitled “Risk
Management Analysis On Insurance Company” done by Mr. Shobhit Nagpal. Roll
No.23, is completed under my guidance.

Signature of the Guide

Date:
Name of the Guide:
Designation:

Countersigned

Director/Project Coordinator
 Annexure-3

FORMAT FOR CONTENTS & LIST OF

TABLES/FIGURES/ SYMBOLS
S No Topic Page No
1 Title Page -
2 Certificate (s)
3 Acknowledgements -
4 Contents -
5 Chapter-1: Profile of the company
5 Chapter-2: SWOT Analysis And -
literature review
5 Chapter3-: Data analysis and -
interpretation
6 Chapter:4- Research methodology -
7 Executive summary
8 References
9 Appendices
 ACKNOWLEDGEMENT
Risk management is very important for insurance industry.
Insurance means that insurance companies take over
risks from customers. Insurers consider every available
quantifiable factors to develop profiles of high and low
insurance risk. Level of risk determines insurance
premiums. Generally, insurance policies involving factors
with greater risk of claims are charged at a higher rate.
With much information at hand, insurers can evaluate risk
of insurance policies at much higher accuracy. To this
end, insurers collect a vast amount of information about
policy holders and insured objects. Statistical methods and
tools based on data mining techniques can be used to
analyze or to determine insurance policy risk levels.
Insurance risk predictive modeling is discussed here.
If past is any guide for predicting future events, predictive
modeling by Machine Learning is an excellent technique
for insurance risk management. Insurance claims
prediction models are developed from past historical
records of insurance polices, containing financial,
demographic, psychographic, geographic information,
along with properties of insured objects. From the past
insurance policy information, insurance claims predictive
models can learn patterns of different insurance claim
ratios, and can be used to predict risk levels of future
insurance policies. Useful information is something that
can be a factor that differentially affects insurance claims
ratios.
 CHAPTER- 1

INTRODUCTION

1.1)INSURANCE AND INVESTMENT SECTOR

Protection Sector in India is amazingly huge and is
developing at a rate of 15-20%. Protection in our nation is
relied upon to reach US$ 280 billion by 2020, the primary
purpose for this is the expanded consciousness of individuals
and progressively creative items propelled by the
organizations. Together with banking administrations,
protection administrations add about 7% to the nation's GDP.
A well‐developed and advanced protection division is an aid
for financial improvement as it gives long‐ term assets to
framework advancement simultaneously fortifying the hazard
taking capacity of the nation.
Protection showed up with the presence of human culture.
Prior protection used to happen through helping one another.
Present day protection was begun as a technique for moving
danger which was rehearsed by Chinese and Babylonians in
second thousand years B.C. Greeks and Romans presented
the birthplace of wellbeing and extra security in 600A.D.
before that individuals used to give cash which can be
utilized if there should arise an occurrence of crisis. An
ordinary person is constantly terrified of vulnerability, that is
the reason he is frightened of hazard in his life. Be that as it
may, in opposition to his desires there is consistently chance
in each progression of life, in-truth hazard is a piece of life,
that is the reason person tends to consistently limit the hazard.
These dangers can be sure just as unsure. Sharing of hazard
with the assistance of financial partnership prompted
advancement of Insurance. Protection is a social gadget
which gives protection from the danger of death toll or
property. Protection spreads the misfortunes of few among
huge gathering of individuals. Dangers for which we can get
guaranteed are demise, hazards of ocean, fire, mishap, and
thievery. It doesn't keep the hazard from happening rather it
gives protection from the misfortunes which we cause from
these dangers. It is likewise a method for sparing and
speculation.
Protection is a lawful contract between two gatherings
guarantor and guaranteed, where safety net provider consents
to pay a specific entirety of cash on the event of a specific
occasion while safeguarded is the individual who consents to
pay a fixed whole known as premium. The archive which
exemplifies the agreement is called arrangement.

A. Principle of Insurance
1) Principle of repayment Indemnity implies security or
remuneration against any misfortune or harm. as per this
standard if an individual bears a misfortune against any
property than he will be completely reimburse just to

the degree of the misfortune and not beyond what that with
the goal that the individual can't make benefit on his
misfortune.
2) Principle of most extreme great confidence –
According to the standard it is the obligation of the assurer
 and guaranteed to unveil all the material certainties which
are critical to survey the
hazard on the life of the client. Client ought to reveal the
stature and weight, Personal history, Family history,
propensities and pastimes.
3) Principle of insurable intrigue – According to this
rule one should have an insurable intrigue for example in
case of misfortune the situation of guaranteed is adjusted.
For ex.
Spouse and Wife, Parent and Children, Creditor and Debtor
and so on.
B. Insurance Regulatory and Development Authority India

(IRDAI)
IRDAI is a self-regulating body which direct and construct
the matter of protection in India. It comprises of 10
individuals, which incorporates one director, five full time
and four low maintenance individuals. All are selected by
the administration of India. It was built up by IRDAI act
1999, to secure the enthusiasm of holders of protection
approaches, to advance and guarantee the development of
protection division.
Statements of purpose of IRDA are:
1. To ensure intrigue and secure reasonable treatment to

policyholder
2. To carry systematic development to protection industry

3. To advance reasonableness, straightforwardness and

precise lead in money related markets

4. To take activities where such measures are deficient or

insufficiently upheld.
5. To guarantee quick settlement of certifiable cases.

C. Life Insurance
It is contract between the safety net provider and
guaranteed where previous guarantees to pay certain total
of cash on occurring of occasion protected against. Needs
extra security fulfil are biting the dust, youthful, living
excessively long, inability, care for kids and riches age.
There are 24 extra security organizations in India.
Advantages of disaster protection are
–

1. Source of pay for seniority

2. Insures family against early passing
3. Brings tax cut
4. Take care of incapacities
5.

D. Life Insurance Products are of six kinds.

These are:
i. Enrichment Plan – Under this arrangement
protection spread is accessible for a specific period as it
were. The total guaranteed is paid to the guaranteed if there
is an uncertain event at development of the arrangement.
ii. Cash Back Policies – Under this approach entirety
guaranteed is returned in single amount after a fixed
interim of time. Likewise, the total aggregate guaranteed is
paid if there should be an occurrence of death.
iii. Entire life Policies – Under this approach the
existence spread is for a mind-blowing duration and at the
season of his demise the aggregate guaranteed is paid to the
family.
iv. Term Insurance Policies – This is an unadulterated
hazard item. Under this arrangement the total guaranteed is
paid distinctly at the season of the passing of the
guaranteed and no cash is paid at the season of
development. In this arrangement the exceptional sum is
least.
v. Unit Linked Insurance Policies – Under this approach
the client cash is put into assets and the arrival is connected
to the exhibition of the reserve. Likewise, the protection is
added to give the client the advantage of duty reserve
funds.
vi. Key man Insurance – It is the protection of the key
individuals from the association. The key individuals are
the individuals who when leave the association or passes
on influences the productivity of the association.

1.2) INTRODUCTION OF THE COMPANY

IDBI Federal Life Insurance is one of India's developing
extra security organizations and offers an assorted scope of
riches the executives, assurance and retirement answers for
individual and corporate clients.
It is a joint-adventure of IDBI Bank, India's head
improvement and business bank, Federal Bank, one of
India's driving private division banks and Ageas, a global
protection mammoth based out of Europe.
About the Sponsors
IDBI Bank Ltd. activities are inspired by a front-line
centre Banking IT stage. It offers customized banking and
money related answers for its customers through its huge
system of Branches and ATMs, spread all over India. they
have likewise set up an abroad branch at Dubai and have
plans to open agent workplaces in different parts of the
world for encasing developing worldwide chances.
IDBI Bank Ltd. keeps on being, since its origin, India's
head modern advancement bank. Made in 1956 to help
India's modern spine, the Bank has since developed as a
giant of mechanical and retail fund. Today, it is among
India's chief business banks, with a wide scope of
imaginative items and administrations, serving clients in all
edges of the nation from 783 branches and 1328 ATMs.
The Bank offers its clients a broad scope of enhanced
administrations including undertaking financing, term
loaning, working capital offices, rent fund, investment,
credit syndication, corporate warning administrations and
legitimate and specialized warning administrations to its
corporate customers just as home loans and individual
advances to its retail customers.
As a feature of their advancement exercises, IDBI Bank
has played an important role in supporting the
improvement of main foundations engaged with India's
money related division – National Stock Exchange of India
Limited (NSE) and National Protections Depository Ltd,
SHCIL (Stock Holding Corporation of India Ltd), CARE
(Credit Analysis and Research Ltd).
Headquarter situated in Mumbai, IDBI Bank has
established itself as a profoundly equipped and devoted
workforce and a best in class data innovation stage, to
structure and convey customized and imaginative Banking
administrations and altered budgetary answers for its
customers crosswise over different conveyance channels.
Federal Bank is one of India's driving private division
banks, with a predominant nearness in the territory of
Kerala. Federal Bank Ltd is occupied with the financial
business. The Bank works in four portions: treasury tasks,
discount banking, retail banking and other financial
activities. Treasury tasks incorporate venture and
exchanging protections, offers and debentures. The Bank's
items and administrations incorporate working capital,
term

account, exchange money, specific corporate fund items,

organized fund, remote trade syndication administrations
and electronic financial prerequisites.
Ageas is a global protection bunch with a legacy spreading
over 180 years. Positioned among the best 20 insurance
agencies in Europe, it has concentrated its business
exercises in Europe and Asia.
These are assembled around four sections: Belgium, United
Kingdom, Continental Europe and Asia and served through
a mix of entirely claimed backups and organizations with
solid money related establishments and key wholesalers
around the globe. Ageas works effective organizations in
Belgium, UK, Luxembourg, Italy, Portugal, Turkey, China,
Malaysia, India and Thailand and has backups in France,
Hong Kong and UK.
Ageas is the market head in Belgium for individual life and
worker benefits, just as a main non-life player through AG
Insurance. In the UK, Ageas is the fourth biggest bank in
private vehicle protection. it utilizes in excess of 13,000
individuals in the united substances and more than 20,000
in the non-merged associations and has yearly inflows of
more than EUR 21 billion.
A. Organizational policies
Vision
• To be the main supplier of riches the board, assurance
and retirement arrangements that address the issues of
our clients and enhance their lives.
Mission
• To consistently endeavour to upgrade client
experience through imaginative item contributions,
committed relationship the board and prevalent
administration conveyance, while endeavouring to
communicate with their clients in a very advantageous
financially savvy way.
• To be straightforward in the way they manage their
clients and to behave with uprightness.
• To put resources for the construction of best human
capital so as to accomplish our central goal. Values
• Transparency: extremely clear correspondence to the
accomplices and partners.
• Value to Clients: An item and administration offering
in which clients see esteem.
• Solid and promised delivery: This converts into being
monetarily solid, operationally hearty and having
lucidity in cases.

• Client -accommodating: counselling and backing in

working with clients.
• Benefit to Stakeholders: Balance the interests of
clients, accomplices, workers, investors and the
network on the loose.
B. Size of the Company
IDBI Federal Life Insurance Co. has in excess of 1700
representatives and around 14,395 counsels who are
working for the organization. Additionally, the size of the
organization as far as net benefit is around 133 crores. The
organization accomplished its breakeven in only 5 years
and is making enormous benefits.
C. Performance overview
IDBI Federal enrolled exceptional development and
accomplished outstanding outcomes in FY 2018-19.
• 8% development in absolute premium and 19%
development on recharging premium in FY 2018-19.
• 31% development in net benefit.
• Recorded the seventh successive year of benefit
• 85% Persistency for thirteenth month - among the best
in the business
• 21 New HR activities propelled
• 14% Operating expense to net premium
• 21% Growth in Assets Under Management (AUM)
• 10% Maiden profit proposed
• 3,100+ purposes of-nearness container India
(incorporates IDBI Bank and Federal Bank offices)
• More than 13 lakh Total arrangements issued
• More than 87,700 crore Total aggregate guaranteed
• 9,107 crore Assets Under Management
• More than 800 crore Capital bases
D. Products of IDBI Federal
IDBI Federal provides a variety of insurance products
which has got both the elements of investment and
protection to their customers. The various insurance
policies provided by the company are:
GUARANTEED WEALTH PLAN
Guaranteed wealth plan is a cash back protection plan that
give ensured yearly pay. It provides guaranteed pay-outs
for 7 consecutive years or lump sum amount at maturity.
The customer has to pay only for the first 7 years of the

policy. It provides life cover for the entire 14 years. The

customer gets tax benefit under 80C and 10(10D).
YOUNG STAR ADVANTAGE PLAN
This is the best plan of IDBI Federal Life insurance. It
provides triple life protection which means in the case of
death, the nominee will get immediate risk cover which
would be 10 times of the annual premium, plus the future
premium would be waived off, and at the time of
completion of the policy term the nominee will get the
maturity sum amount which he was supposed to get. The
policy term can be of 11 years as well as 15 to 20 years.
The customer gets tax benefit under 80C and 10(10D).
WEALTHSURANCE PLAN
Weathervane plan is a straightforward unit connected
arrangement of IDBI government that causes you to
venture out wealth creation. It provides Choice of 8 funds
coupled with the facility of free switches plus Guaranteed
loyalty addition for better growth on your investment. It is
Easy access to your investment with liquidity benefits. It
provides Financial protection for your loved ones with life
cover. Plus, the Tax Benefit under 80C and Sec 10(10D) is
simply cherry on the cake.
LIFE ADVANTAGE PLAN
This arrangement gets you the twofold advantage of life
spread and long-haul sparing. It gives hazard spread to the
candidate at the occasion of death to the guaranteed
individual. On survival of the safeguarded individual at the
season of development, the individual gets development
whole guaranteed in addition to vested ensured increases.
The client gets Tax advantage under 80c and 10 ( 10d ).

1.3) RISK MANAGEMENT AT IDBI

IDBI has faith in consistent advancement of their risk
management system with the end goal of convenient ID,
intercession, and alleviation of risk. Their hazard
management system is ruled by advancement, usage and
observing of monetary and operational procedure. They
are along these lines ready to evaluate the dangers as well
as guarantee alleviation, subsequently improving their
efficiencies and upgrading the worth that they convey to
the partners by adjusting risk craving and technique with
development and return. their evaluation procedure
guarantees opportune reaction choices to limit operational
shocks and misfortunes.
Mindful of the solid interface among risk and return, they
don't put stock in risk evasion; rather they are centred
around comprehension and overseeing dangers viably. This
methodology causes them distinguish the satisfactory
dangers and enhance the equivalent for anticipated returns.
they have a well-characterized administration structure
which plainly plots the authoritative chain of command and
the extent of duties of all the administrating bodies
associated with the hazard management work. The
Company's hazard management administration system
incorporates the Board of Directors (Board), the Risk
Management Committee (RMC), the Operational Risk
Management Group (ORMG), the
Asset Liability Committee (ALCO), the Anti-Fraud
Committee, the BCP Crisis Management Team, the
Product Concept Committee, Outsourcing Committee (OC)
and Information Security Committee (ISC).
Risk Taxonomy keeps on being an imperative part of their
risk management structure and guarantees a predictable
and thorough way to deal with risk recognizable proof,
appraisal, observing and reaction. Guided by this system,
they can appropriately feature and characterize all the
recognized dangers inside the Company, which causes
them develop the important risk management endeavours.
It additionally builds up responsibility for different risk
classes and gives a connection to the general administration
structure of the Company. Subsequently, risk management
turns into a common obligation and isn't claimed by the
Risk Management Department alone.
 CHAPTER - 2

SWOT ANALYSIS AND LITERATURE REVIEW

This insurance increases the risk of the literature of the

expected amount. Risk IDBI Changing Market with
Environmental Federal Due to increase in the
environmental concern among the customers and release
of life IDBI regulations, the survival of the without
environmental concern is federal very tough in the present
times.
Thus, the change in the attitudes towards the environment
can make the debtors tough to survive by affecting
the insurances literature to repay the review amount to the
bank. Risk of Reputation Damaged If the reviews do not
perform their environmental and social responsibilities
then this lowers the credibility of the bank among the life
and thus causing loss of reputation of the bank.
SWOT ANALYSIS
Strengths – IDBI was able to achieve breakeven in a short
period of 5 years only. Some of the key highlight feature are-
• In-depth knowledge and skilled manpower.
• Product to cater the needs of customer.
• Strong Capital
• Low management expenses and administrative cost.
Weaknesses – Some of the
weaknesses are- • Customer
service staff require training
• Presence in rural area is low • High premium.
Opportunities – Some of the opportunities are-
• Demand for imaginative items offering a correct blend
of adaptability, hazard and return.
• Inflow of administrative and monetary ability from
world's driving protection markets

• Lots of opportunity of growth in rural area

Threats – Some of the key threats are-
• Many private insurance agencies likewise competing
for same uninsured populace.
 • Changes in business environment
• Very high competition prevailing in industry •
Large part of market share is occupied by LIC.

CHAPTER 3

DATA ANALYSIS AND INTERPRETATION

To analyze the position of IDBI Federal in terms of risk we are

going to use the balance sheet and profit and loss account of the
company to compute different ratios to find out its financial risk,
credit risk, liquidity risk and operational risk.

5.1)For analyzing financial risk position

For analyzing the company’s financial risk, we use the
following ratios:
a. Debt to capital ratio
Debt to capital ratio is a proportion of influence that gives a
fundamental image of an organization's money related
structure as far as how it is underwriting its activity. It
shows an association's soundness. It is fundamentally an
examination of all out transient obligation and long haul
obligation commitment. Lower obligation to capital
proportions are ideal.
Formula= debt
Debt + shareholders fund

Year debt Shareholders Debt+ Debt to

fund shareholders capital ratio
fund
2018 38,20,571 79,82,975 1,18,03,546 0.32
2019 31,05,500 91,28,533 1,22,34,033 0.25

Inference:
As we can see that the debt to capital ratio has reduced to 0.25
from its previous year figure that was 0.32, this indicates a
better position of company in terms of capitalizing its
operation. The company has gained financial soundness over
the year.

b. Debt to equity ratio

Debt-to-equity ratio gives direct correlation between
obligation financing and value financing.it goes about as a
marker of an organization's capacity to meet outside
obligation commitment. A lower proportion is ideal as it
implies that an organization is financing its activities
utilizing its own store as opposed to utilizing obligation
reserves.

Formula = total liability

Total shareholder’s equity

Shareholder’s equity= asset – liability
 year asset liability Shareholder’s Debt to
equity equity ratio
2018 62,88,773 38,20,571 24,68,202 1.54
2019 63,11,031 31,05,500 32,05,531 0.96

Inference:
We can see a decline in debt to equity ratio by almost
40%. This is a positive sign, as it indicates the
company’s ability to finance its operation using its own
funds rather than using debt funds.

5.2) To analyze the credit risk of the company

To investigate the credit danger of the

organization the following formulas are

used:

A.Liability to asset ratio

It quantifies the extent of association's benefit financed

by liabilities. A proportion more prominent than 0.5
demonstrates that firm fundamentally uses credit and
payables to back resource. For budgetary part the middle
of this proportion is 87.3%.
Formula= total liability

Total asset
year Total liability Total asset Liability to
asset ratio
2018 3,820,571 6,288,773 0.60
2019 3,105,500 6,311,031 0.49

Inference:
The liability to asset ratio for the current year is 0.49
which is smaller than last years ratio of 0.60 and

as we discussed that this ratio should be less than 0.5

ideally. The current year figure indicates that the
company is in safe position now and it uses their own
fund to finance assets.
b. Asset turnover ratio
It is utilized to quantify the proficiency of a firm and
its administration at using capital for resources that
 yields income. The median of this ratio for financial
sector is 0.1x.

Formula= sales

Average total asset

Year Sales Average total Asset turnover

asset ratio
2018 660,354 5,755,646 0.11
2019 1,042,361 6,299,902 0.16

Inference:
We can observe that the asset turnover ratio has slightly
increased to 0.16 from its previous year figure of 0.11.
this is a positive sign, as it indicates that the company is
using its asset in a more efficient way to generate sales.

c. Fixed asset turnover ratio

 This ratio measures how well a firm can utilize its
fixed asset to generate revenue. The median of this
ratio for financial sector is 5.1x.
Formula= sales
Average net property,
plant and equipment

year Sales Fixed asset Fixed asset

turnover ratio
2018 660,354 1,454,421 0.45
2019 1,042,361 1,406,589 0.74

Inference:
The fixed asset turnover ratio has increased by almost
64% from its previous year. It is a great sign as it means
the company is using its fixed asset in the best way to
generate revenue. The ratio for the current year is 0.74
which is higher than the median of this ratio for financial
sector.
5.3)To analyze liquidity risk of the company
a. Cash ratio
It is utilized to evaluate an organization's transient
liquidity. It is an exacting proportion which just
considers money as wellspring of liquidity. This
proportion demonstrates an organization's capacity to
meet its quick necessity of paying current liabilities in
real money. The mean of this ratio for financial sector is
0.1x.
Formula= cash

Current liabilities

year cash Current liability ratio

2018 1,637,837 3,763,143 0.43
2019 1,365,479 2,976,619 0.45

Inference:
The cash ratio of the company has increased very slightly
by 0.02. this is just satisfactory but not very good as the
cash ratio should be between 0.5 to 1.
 b.Current ratio
Current proportion thinks about every single current
resource as wellsprings of liquidity. It speaks to the
benefits a firm hopes to secret to money throughout the
following a year. Current risk speaks to the commitment
a firm should pay in real money over next a year.
Formula= current asset

Current liability

year Current assets Current liability ratio

2018 6,288,773 3,763,143 1.67
2019 6,311,031 2,976,619 2.12

Inference:
The current ratio of the company has increased to 2.12
over the year which is a good sign as it shows the ability
of the company to meet its liability which are due over
for the coming 12 months.
5.4) To analyze the operational risk of the company
a. Degree of operating leverage this proportion is utilized

to quantify how much the working salary of an

organization will change because of an adjustment in
deals. Organizations with huge fixed expense to variable
expense have more elevated amount of working
influence. This proportion helps in the evaluation of
impact of any adjustment in deals on organization's
procuring.

Formula= % change in EBIT

% change in sales

year % change in % change in ratio

EBIT sales
2018 93.88% 271.98% 0.34
2019 31.53% 57.84% 0.54

Inference:
As we can see that the degree of operating leverage of the
company has increased by almost 60% it implies that the
company’s EBIT has become more sensitive to any changes
in the sales. This also means that company has large
proportion of fixed cost.
b. Degree of combined leverage
this proportion reveals to us the joined impact that the
level of working influence and the level of money related
influence have on EPS, given a specific change in deals. It
is utilized to decide most ideal degree of monetary and
working influence to use in any firm.
Formula= % change in EPS

% change in sales

% change in % change in
year EPS sales ratio
2018 93.84% 271.98% 0.34
2019 31.74% 57.84% 0.54

Inference:
This ratio has also increased by almost 60% over the year.
This implies that the firm is in risky position as a high
leverage means means more fixed cost.
Chapter -4
RESEARCH AND METHODOLOGY
Research has a significant role while making this project. This
research project provided me the opportunity to find the reason
behind the current scenario of IDBI federal financial position in
the market, the data helped me top describe the current scenario
more clearly and completely.

Research design- The research design of this project is

basically Descriptive, which means it is a research which tells us
about what has happened and what is happening in the present.

Type of research- secondary data analysis by using ratio

tools.
Source of Data: secondary data in the form of 2 years financial
statements of the company from its annual report of 2017-18 and
2018-19.

Data tools used: Ratio analysis of the financial reports

using MS excel .

EXECUTIVE SUMMARY
Industrial Development Bank of India (IDBI Bank
Limited) was established in 1964 by an ACT to provide
credit and other financial facilities for the development of
the fledgling Indian industry. Initially it operated as a
subsidiary of Reserve Bank of India RBI transferred it to
GOI . Many institutes of national importance finds their
roots in IDBI like Sidbi, Exim bank, NSE and NSDL. The
war cry for reforms in financial space saw GOI reducing its
stake in the bank in the year 2019. At present, Life
Insurance Corporation of India olds 51% stake in IDBI
Bank. Following Life Insurance Corporation of India (LIC)
acquiring 51 per cent of the total paid-up equity share
capital of the bank, IDBI Bank has been categorised as a
private sector bank for regulatory purposes with effect
from January 21, 2019.
For the first quarter of the current financial year 2017-18,
the bank reported a net loss of Rs.853 crore compared to
a profit of Rs.241 crore during the corresponding period
last financial year. In the fourth quarter of financial year
2016-17, the bank had reported a loss of Rs.3,200 crore.
While the reported loss was lower than the preceding
quarter, bad loans continued to surge. In the quarter
ending September 2017 the bank bounced back with a
loss of Rs.198 crore compared to a loss of over Rs.2,000
crore in the previous quarter. The bank is expected to
return to profit in the upcoming financial year.
It currently has 3,702 ATMs, 1892 branches, including one
overseas branch in Dubai, 58 e-lounges and 1407 centers.
The bank has an aggregate balance sheet size of INR
3.74 trillion as on 31 March 2016 IDBI Bank. Retrieved 22
February 2014. On June 29, 2018 (LIC) has got a
technical go-ahead from Insurance Regulatory and
Development Authority of India (IRDAI) to increase stake
in IDBI Bank up to 51%. [7] LIC of India completed
acquisition of 51% controlling stake in IDBI Bank on
January 21, 2019 making it the majority shareholder of the
bank. Subsequent to enhancement of equity stake by LIC
of India on January 21, 2019, Reserve Bank Of India has
clarified vide a Press Release dated March 14, 2019, that
IDBI Bank stands re-categorized as a Private Sector Bank,
with retrospective effect from January 21, 2019.

REFERENCES:
 J. Davis Cummins and Mary A. Weiss (2010), Systematic
Risk and the US Insurance Sector,
Journal of risk and insurance 81 (3), 489-528, 2014
Marijuana Curak , Sandra Lon car , Kline Poposki (2009),
Insurance Sector Development and
Economic Growth in Transition Countries, International Journal
of Finance and Economics,
ISSN 1450-2887 Issue 34 (2009).
W.J.W. Bautzen; J.C.J.M. van den Bergh; L.M. Bouwer
(2009), Climate Change and increased
Risk for the Insurance Sector: a global perspective and an
assessment for the Netherlands, WWW
Bautzen, JCJM Van den Bergh, LM Bouwer Natural hazards
52(3), 577-598, 2010
Anne E. Keener, Ryan B. Lee, Bill McGannon (2003) The
Effect of corporate governance on the
use of enterprise risk management: Evidence from Canada, risk
management and insurance
review, 2003, vol.6, No.1, 53-73
Robert E. Hoyt, Andre P Liebenberg (2011), The Value of
Enterprise

Appendices
Profit and Loss Accounts of the Company