RBI gives in-principle nod to LIC for acquiring majority stake in IDBI Bank

The Cabinet nod is required because the government's stake will be diluted below 51 per cent in IDBI Bank

The Reserve Bank of India (RBI) has given an in-principle nod to Life Insurance Corporation (LIC) for acquiring a majority stake in IDBI Bank, sources said.

The government-owned insurance behemoth had sought the banking regulator’s nod before it had approached the Insurance Regulatory and Development Authority (IRDAI) for seeking regulatory approvals, a senior government official said.

After the Union Cabinet approves the proposal, the RBI will examine if LIC meets the “fit and proper criteria” for being a promoter with a controlling stake in IDBI Bank. 

The Cabinet nod is required because the government’s stake will be diluted below 51 per cent in