LIC to infuse Rs 407 crore in IDBI; hike stake to 14.25%

New Delhi: Life Insurance Corporation of India (LIC) will infuse Rs 406.9 crore in IDBI Bank increasing its stake 14.25 percent in the state-owned lender.

In a regulatory filing, IDBI Bank said it received a letter today from the LIC "for infusion of capital to the tune of Rs 406.90 crore on preferential allotment basis".

The capital infusion from the state-owned insurance behemoth is within the capital amount (up to Rs 600 crore) proposed to be issued to financial institutions including insurance companies, mutual funds, and banks, it added.

Currently, the LIC has 13.76 percent stake in the bank.