LIC board approves taking majority stake in IDBI Bank

The Life Insurance Corporation of India's board has approved raising its stake in state-run IDBI Bank to 51 percent, Economic Affairs Secretary Subhash Chandra Garg told reporters on Monday.

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

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

LIC owned about 8 percent of IDBI Bank as of end-June, while the federal government owned 86 percent.