LIC Plans Big PIE In City-Based PSU Banks
Digbijay Mishra / Kolkata
Life Insurance Corporation (LIC) is investing heavily in city-based Allahabad Bank and UCO Bank following directive from Union finance ministry.
In both the cases, LIC stake in these two public sector banks will cross double-digit mark. UCO board has decided on Tuesday to issue 3.13 crore equity shares to LIC on preferential basis. The Allahabad Bank board will take a call on the ‘number of shares’ to be issued to LIC on Wednesday. However, going by the indications it will not be less than 2 crore.
Total investment of the insurance giant in these two banks is likely to be close to Rs 750 crore. LIC’s stake in UCO is likely to go up to 13% from the current level of 8.44% after the preferential allotment. Similarly, in Allahabad Bank, LIC holding will go up to 13% from the present 8.6%.
The price of UCO scrips has gone up by 3.21% to close at Rs 90.05 while Allahabad Bank’s stock price was 4.59% higher and closed at Rs 207 following the news of LIC investment.
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