LIC Increases Stake In Bank Of Baroda, Exceeds 5% Total Shareholding

On 22 November, the focus will be on Bank of Baroda's shares as LIC, the insurance major, has increased its stake in the public lender. LIC reported that its shareholding in Bank of Baroda has risen by 24.39 lakh shares to 26.02 crore shares through open market transactions, surpassing 5 per cent of the company's paid-up capital to 5.031 per cent. The shares were acquired at an average cost of Rs 197.99, with the transaction completed on 20 November, totaling approximately Rs 48.3 crore in acquisition cost.

On 21 November, Bank of Baroda's stock closed 1.09 per cent lower on the NSE at Rs 195.5 per share, while LIC's shares ended 0.21 per cent lower at Rs 610.6 per equity share.

Earlier in the month, Bank of Baroda announced its plan to raise up to Rs 15,000 crore through tier-II and infrastructure bonds to support business growth. The bank's capital raising committee, in a meeting on 18 November, decided to raise Rs 5,000 crore through tier-II bonds and Rs 10,000 crore through infrastructure bonds.

In its financial results for the September quarter of 2023-24, the PSU bank reported a net profit of Rs 4,252.89 crore, marking a 28.3 per cent increase from the previous year. The growth was attributed to improved asset quality and robust core income growth, with the net interest income (NII) growing 6.4 per cent year-on-year to Rs 10,831 crore.