LIC plans Rs 130-bn capital injection in IDBI Bank; Irdai may ease 15% rule

The board of Irdai, which is meeting on Friday, may grant exemption to LIC from the rule that bars an insurer from holding more than 15% equity stake in any company

The Insurance Regulatory and Development Authority of India (Irdai) is likely to approve Life Insurance Corporation’s (LIC’s) proposal to pick up a substantial stake in IDBI Bank, paving way for capital infusion of about Rs 130 billion. The board of Irdai, which is meeting on Friday, may grant exemption to LIC from the rule that bars an insurer from holding more than 15 per cent equity stake in any company, according to a government official. The insurance regulator might put some caveats and could ask India’s largest insurer to bring down its stake in IDBI Bank over a period of