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| LIC stake in HDFC Bank crosses 5% |
| BS Reporter / Mumbai Dec 25, 2008, 00:16 IST |
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The country’s largest insurer, Life Insurance Corporation of India (LIC), has increased its stake in HDFC Bank to over 5 per cent following acquisition of shares from the open market. LIC picked up 160,000 shares of HDFC Bank from the open market, hiking its stake in the company to 5.01 per cent from 4.97 per cent earlier.
HDFC Bank informed the National Stock Exchange today that the equity holding of the insurer has increased by 0.04 per cent in the private sector lender.
LIC’s current equity investments currently stands at over Rs 23,000 crore for the financial year, out of which a large chunk of investment is allocated towards banks and financial services firms.
An LIC executive said the investment in HDFC Bank was part of normal open market transactions.
LIC holds substantial stakes in a number of public and private sector banks, of which the state-owned insurer’s largest holding stood at 13.42 per cent in Delhi-based Oriental Bank of Commerce as on September 2008. The insurer has increased its stake in the country’s largest private lender ICICI Bank from 8.16 per cent at June end to 8.45 per cent in September.
As on June 2008, LIC holding in HDFC Bank stood at 2.15 per cent.
Among its significant investments in public sector lenders, LIC holds 6.75 per cent in Punjab National Bank, 5.53 per cent in Bank of Baroda, 4.4 per cent in the State Bank of India, and about 4.16 per cent in Bank of India.
The insurer also holds about 10.36 per cent in Axis Bank as a promoter, and about 26.32 per cent as strategic stake in Corporation Bank.
Shares of the HDFC Bank closed at Rs 984.20, up by 0.45 per cent on the NSE. Yesterday, LIC hiked its stake in Vijaya Bank to 9.53 per cent by acquiring shares worth nearly Rs 30 crore from the open market.
Domestic institutional investor acquired over 9429,000 shares representing 2.18 per cent stake in Vijaya Bank. Before the acquisition, LIC held over 3.18 crore shares representing 7.38 per cent stake in the bank which subsequently increased to 9.53 per cent after the purchase.
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