RDAI on Friday approved LIC’s plan to buy 51 percent stake in IDBI Bank, as the insurance regulator gave the insurer exemption from the 15 percent investment cap. The Life Insurance Corporation of India is expected to invest Rs 10,000-13,000 crore in tranches in the NPA-mired state-run lender according to media reports. The insurer will pare its stake in the bank to 15 percent in 5-7 years, according to PTI. The valuation will be decided as per Sebi regulations. Post the deal, the government's stake in the bank will fall below 51 percent. The government currently holds 81 percent stake in the bank and the deal may involve both real estate and non-core entities of IDBI Bank. LIC has a 10.82 percent stake in the state-run lender.
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