IRDAI Gives Nod To LIC To Buy Stake In IDBI Bank

In a first-of-its-kind transaction, the Insurance Regulatory and Development Authority of India (IRDAI) has approved a proposal allowing Life Insurance Corporation (LIC) to acquire a majority stake in the IDBI bank.

Under the proposal, the public sector life insurance behemoth can raise its stake in the public sector bank to 51%, injecting Rs10,000-13,000 crore in the debt-ridden lender. The acquisition, however, will be seen only as an investment and LIC will gradually lower its stake in the lender.