Life Insurance Corporation (LIC) has hiked its share in Indian Overseas Bank (IOB) from 9.96% to nearly 12%.
LIC has managed to do so by purchasing extra shares of the bank from open market in various trenches. The Insurance Regulatory and Development Authority (IRDA) had placed a restriction on the exposure that LIC cane take on one company to 10%. The norm is still in place although LIC has asked for a review of the same.
LIC has purchased about 2% stake via market purchase. With this, the stake of LIC in IOB went up to 11.97% from 9.96%. The company has purchased 1, 08, 41,158 shares and the transaction was carried out on BSE and NSE.
IOB, which also offer personal loanshas informed both the exchanges that now LIC has holds 6, 52, 02,526 shares (11.97%) in the bank.
The Government stake in the bank is 61.23% while Citigroup Global Markets Mauritius Pvt Ltd holds 1.59% equity shares. The total public shareholding in the bank is 38.77%.
LIC has been planning to venture into the banking sector. As of the quarter ending December 2009, LIC has been investing in major public sector banks like Canara Bank (5.87%), Bank of India (7.65), SBI (10.53), Corporation Bank (26.32) PNB (9.15), Bank of Baroda (7.94), Oriental Bank of Commerce (13.58), Syndicate Bank (10.35), Allahabad Bank (10.94), Dena Bank (5.77 )and Andhra Bank (9.86). In the private sector banks, LIC holds shares in HDFC Bank (7.02), ICICI Bank(10.35) and Federal Bank (4.39%).