Life Insurance Corporation of India (LIC), the country's largest insurer, has invested Rs 40,000 crore in equity so far this fiscal, exceeding its total equity exposure of the last financial year.
"For the eleven months ended February 2009, we have invested Rs 40,000 crore in equities. Equity investments in FY09 have exceeded the total equity investments made last fiscal," a top LIC official told PTI here.
LIC's investment in stock markets every year is around 8-9 per cent of its total premium collection, the official said, adding, "the banking sector remains appealing to us."
The state-run insurer recently invested in three large companies, including State Bank of India (SBI), taking into account "an attractive valuation and good investment prospects".
The insurance giant picked up a 2.11 per cent stake in SBI for Rs 1,484.12 crore, taking is total shareholding in India's largest bank to 9.16 per cent (4.94 crore shares).
It acquired a 2.86 per cent stake in Indian Overseas Bank (IOB), also a government lender, for Rs 57.65 crore and a 2.18 per cent in private firm Cummins India for Rs 72.22 crore.
LIC increased its stake in IOB to 9.96 per cent by purchasing additional shares worth Rs 57.65 crore between February 19 and March 3.
It also purchased 43.22 lakh shares Rs 72.22 crore in engine manufacturer Cummins India. With this, LIC now has a total of 7.6 per cent stake in the company.
The insurer had also bought an additional 2.27 crore shares in ICICI Bank, increasing its total holding in the bank to 9.38 per cent (10.44 crore shares).
LIC has also upped its stake in various other state-run banks in recent times.
These banks are Union Bank of India (2.18 per cent), Oriental Bank of Commerce (2.60 per cent), Bank of India (1.63 per cent), Canara Bank (1.21 per cent) and Punjab National Bank (0.38 per cent).
