The Life Insurance Corp. of India (LIC), the country’s largest insurer, has sought regulatory approval to increase its stake in Axis Bank Ltd, pitching for a greater say in India’s third largest private bank’s operations. LIC holds 10.36% in Axis Bank and needs approval from the Insurance Regulatory and Development Authority (Irda) as well as the Reserve Bank of India (RBI) to hike its stake. As per RBI norms, one bank cannot own more than 5% in another bank but institutions and promoters can hold up to 10% stake. Irda regulations, too, cap an insurance firm’s holding at 10% in any company, which applies only to instances of new investments. LIC has been off-late an active investor in India's banking sector space.
Refer to this link for further analysis on LIC's other investments in India's banking sector
http://mergers-in-india.blogspot.com/2009/03/lic-bets-big-in-indias-equity-markets.html
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment