The meeting could take place in a day or two, sources said. The board should approve the allotment latest by the end of this week, they added.
After the approval, both the entities will seek regulatory clearances including from Securities and Exchange Board of India, and Reserve Bank of India.
Insurance Regulatory and Development Authority of India (Irdai) has already given approval to LIC for the stake purchase, a move which will help the debt-ridden state-owned bank get a capital support of Rs 10,000- 13,000 crore.
As per current regulations, an insurance company cannot own more than 15 per cent in any listed financial firms.
It will get about 2,000 branches through which it can sell its products, while the bank would get massive funds of LIC.
The bank would also get accounts of about 22 crore policy holders and subsequent flow of fund.
If the deal goes through, IDBI Bank, which is grappling with mounting toxic loans with gross non-performing assets at a staggering Rs 55,600 crore at the end of the March quarter, will get the much needed capital support to revive its fortune.
During the January-March quarter of last fiscal, the lender's net loss stood at Rs 5,663 crore. The government would not get the proceeds from the stake reduction as the money would be utilised for the bank's revival.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)