India’s largest life insurance company, Life Insurance Corporation (LIC), has announced that it has increased its shareholding in Bank of Baroda (BoB), a leading public sector bank. LIC has now raised its stake to 7.05%, up from 5.03% earlier.
Bank of Baroda (BOB or BoB) is an Indian government Public sector bank headquartered in Vadodara, Gujarat. It is the second largest public sector bank in India after State Bank of India.
LIC Acquires Over 10 Crore Shares
According to a recent regulatory filing by LIC, the company bought an additional 10.45 crore shares of Bank of Baroda. This purchase was made through the open market gradually over a period of one-and-a-half years.
The acquisition took place between November 20, 2023, and April 16, 2025. This steady investment shows LIC’s growing confidence in Bank of Baroda’s future growth and financial performance.
Bank of Baroda Share Price on the Rise
Following the announcement, shares of Bank of Baroda were seen trading at ₹250.20 per share on the Bombay Stock Exchange (BSE), reflecting a 3.09% increase in value. This rise in share price suggests a positive market reaction to LIC’s increased investment.
Why This Matters
LIC is known for making strategic investments in strong public sector companies. By increasing its stake in Bank of Baroda, LIC signals trust in the bank’s stability, growth potential, and performance. For investors and market watchers, this move is seen as a strong vote of confidence in the bank.
Government Stake in Bank of Baroda
The government of India had 63.97% stake in Bank of Baroda as of 31 December 2024.
