LIC Increases Stake in Central Bank of India Beyond 6% Amid Government-Backed Share Sale
LIC Increases Stake in Central Bank of India to 6.06%
The Life Insurance Corporation of India (LIC) has strengthened its presence in Central Bank of India, acquiring a significant stake in the public sector lender. In an exchange filing, Central Bank of India announced that LIC purchased 26.26 crore equity shares, representing a 2.901% stake in the bank, through market purchases on May 22. This acquisition has resulted in LIC's shareholding increasing to 6.06%.
According to the latest shareholding pattern, the promoter group holds a dominant 89.27% stake in the company. Insurance companies own 3.26%, while banks hold 1.20%. Foreign portfolio investors (FPIs) account for 0.75% shareholding in the company.
Government Exercises Oversubscription Option in OFS
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In a separate development, Central Bank of India announced that the government has decided to exercise the oversubscription option in the ongoing offer for sale (OFS) in the bank. The original base offer proposed to sell up to 36,20,56,051 equity shares, representing 4% of the bank's total paid-up equity share capital. However, the government has now decided to sell an additional 36,20,56,051 equity shares, equivalent to 4% of the bank's total paid-up equity share capital, under the oversubscription option.
As a result, the total OFS size has increased to up to 72,41,12,102 equity shares, representing 8% of the bank's total paid-up equity share capital. Out of the total offer size, 7,24,11,212 equity shares, or 10% of the offer, will be reserved for retail investors on May 25, subject to valid bids. Additionally, 75,00,000 equity shares, equivalent to nearly 0.1% of the bank's total issued and paid-up equity share capital, will be offered to eligible employees as part of the issue.
Central Bank of India Q4 Performance
Central Bank of India reported a mixed financial performance for the quarter ended March 2026. The bank posted a net profit of ₹724.4 crore in Q4FY26, marking a decline of 30% compared with ₹1,033.6 crore reported in the corresponding period last year. However, net interest income (NII) rose 17.8% YoY to ₹4,002 crore, reflecting growth in the bank's core lending operations.
On the asset quality front, gross non-performing assets (NPA) improved marginally to 2.67% from 2.70% on a quarter-on-quarter basis. Net NPA, however, edged higher to 0.49% from 0.45% sequentially. For FY26, the bank's total deposits increased 13.38% YoY to ₹4,67,923 crore. CASA deposits rose 9.75% to ₹2,20,781 crore, while gross advances also grew 9.75% to ₹2,20,781 crore.
The lender also declared a fourth interim dividend of 6%, translating to ₹0.60 per equity share with a face value of ₹10 for FY26. The bank fixed May 8, 2026, as the record date to determine shareholders eligible for the dividend payout.
| Financial Parameter | Q4FY26 | Q4FY25 | YoY Growth |
|---|---|---|---|
| Net Profit (₹ crore) | 724.4 | 1,033.6 | -30% |
| Net Interest Income (₹ crore) | 4,002 | 3,404.2 | 17.8% |
| Gross Non-Performing Assets (%) | 2.67 | 2.70 | -1.03% |
| Net Non-Performing Assets (%) | 0.49 | 0.45 | 8.89% |
Note: The table above compares key financial parameters of Central Bank of India for Q4FY26 with Q4FY25.
Investor Takeaway
LIC's increased stake in Central Bank of India may have a minimal impact on the bank's stock price.
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