LIC hikes stake in Bank of Baroda, total shareholding crosses 5%

Shares of Bank of Baroda will be in focus on November 22, as the insurance major LIC increased its shareholding in the public lender. LIC said that its shareholding in Bank of Baroda has increased by 24.39 lakh shares to 26.02 crore shares from 25.78 crore shares via open market transactions.

The total shareholding crossed 5 percent of the paid-up capital of the company to 5.031 percent. The shares were acquired for an average cost of Rs 197.99 and the transaction was completed on November 20. Therefore, the cost of acquisition would be around Rs 48.3 crore in total.

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On November 21, Bank of Baroda stock settled lower by 1.09 percent on the NSE, at Rs 195.5 apiece. Shares of LIC ended 0.21 percent in the red, at Rs 610.6 per equity share.

Earlier this month, Bank of Baroda said in an exchange filing that it plans to raise up to Rs 15,000 crore through tier-II and infrastructure bonds to fund business growth.

The capital raising committee of the bank met on November 18 and decided to raise Rs 5,000 crore through tier-II bonds and Rs 10,000 crore through infrastructure bonds, said the PSU bank.

The PSU lender on November 4 reported a net profit of Rs 4,252.89 crore for the September quarter of 2023-24, up 28.3 percent from last year, on the back of improved asset quality and healthy core income growth. The bank’s net interest income (NII) grew 6.4 percent year-on-year to Rs 10,831 crore.

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