LIC Ups Stake in Bank of India to 8.38%; Shares Climb 2% on May 14

Bank of India (BoI) shares saw a 2% uptick, reaching a day’s high of ₹114.90 on the BSE on May 14, following an announcement that the Life Insurance Corporation of India (LIC) has increased its stake in the lender to 8.38%.

According to an exchange filing, LIC raised its stake by approximately 2.026% over nearly four years, from September 2, 2021, to May 9, 2025. This move raises LIC’s holding in the public sector bank from 6.35% to 8.38%, reinforcing its continued faith in the bank's performance and growth outlook.

As of the March 2025 quarter, promoters and the promoter group hold 73.38% of BoI’s equity, with public shareholders owning the remaining 26.62%. Among the notable public investors, SBI PSU Fund holds a 1.52% stake.

Strong Q4 FY25 Performance

For the fourth quarter of FY25, Bank of India reported an 82.5% year-on-year rise in profit after tax (PAT), which stood at ₹2,626 crore. The bank's net interest income (NII) also registered modest growth, rising 2.1% YoY to ₹6,063 crore from ₹5,936 crore in the same quarter last year.

The bank also announced a final dividend of ₹4.05 per share, setting June 20 as the record date for shareholder eligibility.

Share Price Movement

Despite a 9.60% decline over the past year, BoI shares have performed positively in the shorter term. Year-to-date, the stock is up 9.64%. Over the last six months, it gained 7.55%, and in the last three months alone, it rose by 11.38%. The stock has also added 4.07% in the past month. On Tuesday (May 13), BoI shares closed 2.3% higher at ₹112.55 on the BSE.

The rise in LIC’s stake and BoI’s healthy quarterly results seem to have instilled confidence among investors, driving the recent rally, as per news reports.

Read More: Aurionpro Reported 32% PAT Growth in FY25, Eyes Bigger Global Play in FY26.

Conclusion

The increase in LIC’s stake to 8.38% underscores institutional confidence in Bank of India’s fundamentals and long-term growth prospects. Coupled with a strong Q4 performance, rising profits, and dividend declaration, the developments have sparked positive investor sentiment.

While past performance shows mixed returns, the recent momentum suggests renewed market optimism. Investors may find it worthwhile to monitor BoI's strategic moves and performance going forward.

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