MUMBAI - Life Insurance Corporation of India (LIC) has ramped up its investment in Bank of Baroda (BoB), acquiring additional shares that have taken its stake over the 5% threshold. The transaction, completed on Monday, involved an investment of nearly Rs 48.3 crore. Following the announcement of this increase in LIC's holding, both Bank of Baroda and LIC saw their stock prices decline slightly on Tuesday on the National Stock Exchange (NSE).
The purchase by LIC comes as Bank of Baroda is actively bolstering its capital base. Earlier this month, BoB stated it has been working towards raising Rs 15,000 crore through tier-II and infrastructure bonds. This initiative is a part of the bank's wider strategy to fund its growth ambitions.
Bank of Baroda's recent financial performance has shown positive signs, with the September quarter report for FY23-24 revealing a substantial rise in profits compared to the same period last year. The bank's net interest income (NII) also saw an increase. These financial improvements have been attributed to enhanced asset quality and core income performance.
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