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LIC
to hike stake in Corp Bank
Our Banking Bureau
23 October 2001
 Mumbai:
The Insurance Regulatory Development Authority (IRDA) has granted
special permission to the Life Insurance Corporation of India (LIC)
to hike its stake in Corporation Bank from 12.3 per cent to 28.3
per cent. Presently IRDA permits insurance companies to invest
only up to 20 per cent of the equity of other companies.
The stake is being
acquired through the issue of additional 2.34 lakh shares of
Corporation Bank’s equity capital at Rs 196 a share. This price
is at a premium of 62 per cent to the current price of the bank’s
share, which is at Rs 121 on the Bombay Stock Exchange.
 IRDA’s
decision to relax its norms and permit LIC to hike its stake has
been taken keeping in mind the fact that this investment, though
sizeable in size, is only a small chunk of LIC’s overall
investment portfolio.
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