LIC has raised its stake in Central Bank of India to 6.06% through fresh market purchases.
The government has also expanded the bank’s ongoing OFS to an 8% stake sale after exercising the oversubscription option.
LIC acquired around 26.26 crore equity shares, representing an additional 2.9% stake in the PSU lender.
LIC Buys Fresh 2.9% Stake in Central Bank as Govt Doubles OFS Size
LIC acquired nearly 2.9% additional stake in the PSU lender through market purchases, while the government expanded its ongoing OFS after strong investor demand
Summary
Advertisement
Life Insurance Corporation of India (LIC) has increased its stake in Central Bank of India from 3.16% to 6.06% after purchasing additional shares in the public sector lender through the open market.
According to an exchange filing by the bank, LIC acquired around 26.26 crore equity shares, equivalent to a 2.9% stake, on May 22. The transaction pushed the insurer’s total holding in the public sector lender above the 6% mark.
The development comes alongside the government’s ongoing offer for sale (OFS) in Central Bank of India, where the Centre has now decided to fully exercise the oversubscription option.
Government Expands OFS
The bank said the President of India, acting through the Department of Financial Services under the Ministry of Finance, informed stock exchanges about the decision to increase the OFS size.
Under the original proposal, the government planned to sell a 4% stake in the lender through the OFS. However, after exercising the oversubscription option, the total offer size has now doubled to 8% of the bank’s paid-up equity capital.
Advertisement
The OFS opened for non-retail investors on May 22, while retail investors and eligible employees can participate on May 25. Around 10% of the total offer has been reserved for retail investors, while a separate portion has been earmarked for employees.
Q4FY26 Performance
For the quarter ended March 2026, Central Bank of India reported a net profit of ₹724 crore, down about 30% year-on-year (YoY) from ₹1,033 crore in the corresponding period last year.
Net interest income (NII), a key indicator of core banking income, rose nearly 18% YoY to ₹4,002 crore during the quarter. On the asset quality front, gross non-performing assets improved marginally on a sequential basis, while net NPA inched up slightly.
For FY26, the bank reported double-digit growth in deposits, while advances and CASA deposits also recorded healthy expansion. The lender had earlier announced a fourth interim dividend of ₹0.60 per equity share for FY26.
Advertisement