Israel Discount Bank sells Harel stake -source

JERUSALEM, July 20 (Reuters) - Israel Discount Bank (DSCT.TA), the country's third-biggest bank, has sold its 5.97 percent stake in Harel Insurance and Financial Services (HARL.TA) for 190 million shekels ($48 million), a source close to the deal said on Monday.

The source declined to identify the buyer or confirm a report on financial news website TheMarker.com that Discount, controlled by the Bronfman Group, had posted a profit of 60 million shekels from the sale.

"The price of the deal is good and the move is in line with the bank's efforts to cut the size of its risky assets," the source said.

Discount declined to comment.

Its shares closed 2.8 percent lower at 5.55 shekels.

U.S.-Canadian businessman Matthew Bronfman and Rubin Schron run the Bronfman Group, which bought a 26 percent stake in Discount in early 2006.

Harel is Israel's third-largest insurance group. (Reporting by Joseph Nasr, Editing by Dan Lalor) ($1 = 3.89 shekels)