The country’s largest insurer, Life Insurance Corporation (LIC) has sold 2.02% stake in Federal Bank, a Kerala-based private sector bank for about 170 crore. LIC has sold 34.71 lakh shares comprising 2.02% of the bank on March 15, 2013 through an open market transaction.
Pursuant to the stake sale, LIC shareholding in the bank has come down to 3%. In February 2010, LIC had picked up stake in the bank.
Federal Bank is the fourth largest bank in India in terms of capital base and can easily boast of a Capital Adequacy Ratio of 17.23%, one of the highest in the industry. This along with the existence in a highly regulated environment has helped the bank to tide over the recession with minimum impact to its financial stability.
