LIC already has 7-7.5% stake in IDBI Bank and will acquire the remaining for majority holding.NEW DELHI: The Cabinet on Wednesday cleared the purchase of 51 per cent controlling stake in IDBI Bank by state-run insurer Life Insurance Corporation (LIC), sources said.
As per the proposal, the debt-laden bank will issue preferential shares to Life Insurance Corporation (LIC) to raise capital.
The LIC-IDBI deal has been approved, a source said after the meeting of Union Cabinet, chaired by Prime Minister Narendra Modi.
LIC already has 7-7.5 per cent stake in the bank and will acquire the remaining for majority holding.
Although, the proposed acquisition by LIC would not bring any money to the government, the bank would get capital support between Rs 10,000 crore and Rs 13,000 crore, depending on its share price.(Except for the headline, this story has not been edited by TheIndianSubcontinent staff and is published from a syndicated feed.)