The board of state-run Life Insurance Corporation (LIC) on Monday approved the acquisition of up to 51 per cent stake in the government-owned IDBI Bank, Economic Affairs Secretary S C Garg said.

Briefing the media following the board meeting, Garg said the sale process is likely to take place through preferential shares. "The amount we're looking at (from stake sale) will be as per the issue of the preferential shares," he said. Queried on whether an open offer would also be made for the IDBI stock, Garg said this was unlikely.