The Insurance Regulatory and Development Authority of India (Irdai) is open to allowing the Life Insurance Corporation of India (LIC) to increase its stake beyond the 15 per cent ceiling in public sector banks (PSBs). The move is to give a boost to the government’s recapitalisation plan, an initiative to help banks tackle bad loan woes and revive growth.
The insurance sector regulator has set a 15 per cent cap on equity shareholding in single stocks for insurance firms.Currently, LIC’s holding in a dozen PSBs is between 10 per cent and 14 per cent.
