India's IPO-bound LIC may not sell entire stake in IDBI Bank - chairman

State-run Life Insurance Corp Of India (LIC), which is planning the country's largestIPOnext month,maynotsellitsentirestakeinIDBIBankand can use its large network of branches to market its insurance services, its chairman said.

LIC, the country's biggest insurance company, is planning to float a 5%staketo raise about $8 billion next month, which could make itIndia'slargest initial publicoffering (IPO) by far.

Its majoritystakeinIDBIBank, which it rescued in 2019, is seen as a risk to its balance sheet.

"I would like to have somestakeinIDBIBank. It has been the strongest contributor to the bancassurance channel for us. This will help us to grow that part of the channel," said M R Kumar in a press conference with reporters on Monday.

India'sgovernment andLIChold over 90%stakeinIDBIBank, which had assets of over 2,900 billion rupees ($38.91 billion) at the end of December and over 1,800 branches across the country.LICtook over the lender when it was weighed down by bad loans and needed a new infusion of capital.

The government andLIChave been looking at offloading theirstakeinIDBIfor the past few years.

Kumar also saidLICis well capitalised, and potential investors shouldnotworry about government control post theIPOas decisions are taken by its board andnotby the government, which will hold a 95%stakeafter the flotation.