LIC increases stake in Bank of Baroda, shares remain sluggish

New Delhi: The Insurance Corporation of India (LIC) has acquired additional shares in the Bank of Baroda (BoB), taking its stake beyond the 5% limit. This stake transaction was completed on Monday for approximately Rs 48.3 crore. Following the announcement of this increase in LIC’s stake, share prices of both Bank of Baroda and LIC saw a slight decline on the National Stock Exchange (NSE) on Tuesday.

This purchase by LIC comes at a time when the Bank of Baroda is actively expanding its capital base. Earlier this month, BoB had said it was working towards raising Rs 15,000 crore through Tier-II and infrastructure bonds. This initiative is a part of the bank’s broader strategy to meet its growth ambitions.

Bank of Baroda in profit!

Bank of Baroda’s recent financial performance has shown positive signs, with the September quarter report for FY 2023-24 revealing a substantial increase in profits compared to the same period last year. The bank’s net interest income (NII) also witnessed an increase. These financial improvements have been attributed to enhanced asset quality and core earnings performance.

On November 21, Bank of Baroda stock closed at Rs 195.5, down 1.09 percent on the NSE. Shares of LIC closed at Rs 610.6 per equity share, down 0.21 percent.