LIC trims stake in IDBI Bank and Allahabad Bank in first quarter

In the first quarter of the current financial year, Life Insurance Corporation of India (LIC), the largest investor in state-owned lenders, has pared its exposure in IDBI bank and Allahabad Bank.

LIC has reduced its stake in IDBI Bank from 10.82% in Q4FY18 to 7.98% in Q1FY19. In addition, it has trimmed its stake in Allahabad Bank from 12.37% to 9.89% in the said period.

However, its stakes remained unchanged in other lenders such as Punjab National Bank (PNB) and Indian Overseas Bank at 12.24% and 5.36% in Q4FY18 and Q1FY19, respectively.

However, LIC has increased its stake in Bank of Baroda (BoB), Indian Bank and State Bank of India (SBI) by 42.6%, 37.8% and 2.5%, respectively. The valuation is based on data on ownership patterns of banks announced in the last quarter.

Since March 2017, LIC has reduced its stake the most in Bank of Baroda to 68.2%. This is followed by Indian Overseas bank (-48.8%), IDBI bank (-42.46%), Indian Bank (-42.03%) and Allahabad Bank (-32.72%). Additionally, stock prices of all these public sector banks have taken a beating on the bourses. These stocks have fallen between 1.5% to 53% since the beginning of the year.

Punjab National Bank shares have declined the most at 52.83%, followed by Allahabad Bank (-39.5%), Indian Overseas Bank (-36.94%) and Bank of Baroda (-13.57%). Others include Indian Bank, SBI and IDBI Bank.

On July 17, IDBI Bank said its board has decided to seek the government’s decision on Life Insurance Corporation of India’s (LIC) proposal to acquire 51% stake in the bank. On Thursday, Indian Bank closed the session 7.01% higher at `331.5 on the Bombay Stock Exchange (BSE). Other gainers include SBI, Bank of Baroda, Allahabad Bank, Punjab National Bank and Indian Oversees Bank. However, IDBI Bank closed the session 0.17% down at `58.8 on Thursday.

LIC Housing Finance Ltd