The government and LIC want to sell 51-74% of the lender through a strategic divestment. The official said the banking regulator had informed that it would allow unregulated entities to own more than 40% of IDBI Bank at the centre’s request.

It is understood that the Reserve Bank of India (RBI) has accepted the centre’s request to allow non-financial institutions and non-regulated entities to own more than 40% stake in IDBI Bank, as seen by the Union Government and Life Insurance Companies (LIC) to sell through a strategic divestment process 51-74% stake in the lender.