Irdai permits LIC to pick up to 51% stake in debt ridden IDBI Bank

IDBI Bank is grappling with mounting toxic loans with gross non-performing assets rising to a staggering Rs 556 bn

Insurance regulator Irdai on Friday permitted LIC to pick up to 51 per cent stake in the debt-ridden IDBI Bank, sources said.

The decision, they said was taken at a meeting of the Board of Directors of Insurance Regulatory and Development Authority of India (Irdai) at Hyderabad this afternoon.

LIC currently hold 11 per cent stake in the bank.

Sources added that if the deal goes through, the IDBI Bank will get the capital support of Rs 100-Rs 130 billion

.

State-owned LIC has been looking to enter the banking space by