LIC raises stake in Canara Bank, Bank of Baroda

Country's largest insurer Life Insurance Corporation (LIC) has raised stake in state-owned Canara Bank by about 7.7 per cent through preferential allotment of shares.

It has also increased its stake in another public sector lender Bank of Baroda (BoB) by buying 4.7 crore shares from the open market.

With the acquisition, the LIC's stake in BoB increased by 2.1 per cent to 11.4 per cent. LIC acquired the stake for a consideration of about Rs 750 crore as per the current price.

These shares were acquired over a period between January 16 and May 25, 2015 from the open market, BoB said in a Bombay Stock Exchange (BSE) filing.

With acquisition of 4 crore shares for a consideration of Rs 1,520.32 crore, the stake of LIC in Canara Bank has gone up to 14.4 per cent, the lender said in a separate filing on the BSE.

Prior to this preferential allotment, LIC was holding 3.46 crore shares or 6.7 per cent in Canara Bank.