* Gets approval to redeem $75 mln preferred stock

June 2 (Reuters) - Valley National Bancorp (VLY.N: Quote, Profile, Research) said it received approval from the U.S. Treasury to redeem 25 percent of its outstanding preferred shares issued under the Capital Purchase Program.

The holding company of Valley National Bank said it will repurchase $75 million of its $300 million preferred stock issued to the Treasury, paying about $75.2 million to include accrued and unpaid dividends for the shares.

The company said it prefers an incremental repayment at this time rather than a full repayment given the unpredictable economic environment and has not requested permission to repurchase the remaining preferred shares at this time.

Shares of the Wayne, New Jersey-based company closed at $12.37 Tuesday on the New York Stock Exchange. (Reporting by Amiteshwar Singh in Bangalore; Editing by Vinu Pilakkott)