LIC picks up additional 5 pc in BoB for Rs 1,645 crore

MUMBAI: The third largest state-run lender Bank of Baroda today alloted 1.96 equity shares, aggregating 5 per cent of its equity capital, to Life Insurance Corporation ( LIC) via a preferential allotment, raising Rs 1,645 crore, as part of its recapitilisation by the Centre.

The bank issued the equity shares to LIC at an issue price of Rs 840.10 a share, Bank of Baroda said in a filing to the BSE.

While it has alloted 1,46,57,600 shares to LIC Life Fund, 6,93,410 were given to Pension Fund; 20,00,000 for Superannuation fund and 15,00,000 to Gratuities.

The bank has alloted 1,26,295 shares to LIC's Samridhi Plus Fund, 1,57,869 shares to to India Wealth Plus Fund; 1,42,082 to India Endwonment Plus Growth Fund; 3,00,048 to India Market Plus Growth Fund of the Corporation.

On Wednesday, BoB shareholders had accepted a board proposal to issue Rs 1,645 cr preferrential shares to LIC, after the cash-strapped government asked LIC to pick the stake on its behalf.

Last year, the government had infused Rs 2,461 crore into the bank.

The city-based BoB posted 20.7 per cent rise in net profit at Rs 1,289.85 crore in the third quarter of the current fiscal on the back of sound growth in its core income.