Life Insurance Corporation of India (LIC) has increased its stake in state-owned lender IDBI Bank from 7.21% to 14.37%.
The bank has transferred the 7.16% stake or 158 million equity shares on a preferential basis to LIC.
The share allotment forms part of the bank’s move to trim government stake in the bank. The government currently owns a 72% stake in the bank, down from over 80% earlier.
The stake increase by LIC will make the life insurer the second largest shareholder of the bank after the government.