LIC offers to buy 51% stake in IDBI

The Industrial Development Bank of India (IDBI) on Monday received an offer from the Life Insurance Corporation of India (LIC) seeking to buy a 51 percent controlling stake in the public sector bank.

The bank's board will take the final call after approval from the Government of India.

Addressing a press conference, the Managing Director and the Chief Executive Officer of IDBI, B. Sriram said, "The matter was placed before the board of IDBI bank and today the board met and we have decided to convey the interest of LIC to the Government of India for their decision in these matters."

He said that they will review the LIC's interest in taking up 51 percent controlling stake of the bank, and therefore give them promoter status.

They will also decide if the mode of infusion will be by preferential issue of shares or through an open offer.

Currently, 86 percent of the bank is owned by the Government of India, 7.98 percent by the LIC and the balance six percent by the public.

"We have advised the stock exchanges, the Reserve Bank of India (RBI) and the Securities and Exchange Board of India (SEBI). Any further action will be taken after the decision from the Government of India," Sriram added.