<h1>Government Approves Plan to Reduce Stake in IDBI Bank, Allowing LIC to Take Control and Boost Synergies.</h1> The Union Cabinet has approved the reduction of the Government of India's shareholding in IDBI Bank to below 50%, allowing Life Insurance Corporation of India (LIC) to acquire a controlling stake. This move involves LIC becoming the promoter of the bank through preferential allotment or open offer of equity, with the government relinquishing management control. The acquisition aims to create synergy benefits, including cost reduction, improved efficiency, and expanded product offerings. LIC will gain bancassurance opportunities through IDBI's branch network, while the bank will benefit from LIC's agent network for improved customer services and financial inclusion. This strategic move supports LIC's vision of becoming a financial conglomerate.