New Delhi, Oct. 14 -- Life Insurance Corporation of India (LIC) will reduce its stake in IDBI Bank to 19 per cent as the Union Cabinet on Wednesday approved the strategic restructuring of the lender, allowing Canada's Fairfax Financial Holdings to acquire a controlling 60.72 per cent stake for Rs 52,878 crore.

Announcing the decision, Union Minister Ashwini Vaishnaw said the restructuring would help attract foreign investment into India's financial sector and create fresh growth opportunities for small businesses and entrepreneurs.

"A major decision has been taken regarding the financial sector, specifically concerning IDBI, an institution crucial for the growth of our MSMEs and new industries. A decision has been made to undertake the ...