Life Insurance Corporation of India has bought Rs 2750 crore worth shares in public sector banks, according to a research study by Angel Broking quoted in news reports. The insurer has thus extended a helping hand to these banks affected by NPAs and eroding capital. LIC has invested in nine banks in the past few weeks – IDBI Bank, Vijaya Bank, Syndicate Bank, Oriental Bank f Commerce, Indian Overseas Bank, Central Bank of India, Andhra Bank, Allahabad Bank and Dena Bank. The investments have happened in a scenario where investors have been avoiding these banks. Analysts see LIC’s move as an interim relief for some of the mid-size to small banks. IDBI Bank received the largest sum of Rs 1,500 crore with LIC buying 28.07 crore shares at an issue price of Rs 53.44 each.
