LIC board gives nod to acquisition of up to 51% stake in IDBI Bank: Garg

LIC has been looking to enter the banking space by acquiring a majority stake in IDBI Bank as the deal is expected to provide business synergies despite the lender's stressed balance sheet

Life Insurance Corporation of India's (LIC's) board has approved acquiring up to 51 per cent stake in state-run IDBI Bank, Economic Affairs Secretary Subhash Chandra Garg told reporters on Monday.

Garg, who is on the board of state-run LIC, said the additional stake buy would be most likely through a preferential shares issue, enabling injection of funds to IDBI Bank.

Now LIC will approach markets regulator Sebi. Insurance regulator Irdai has already given its approval to the insurer for the stake purchase.

Garg also said if required LIC will make an open offer. 

LIC owned about 8 per cent of