LIC Share Price in Focus as Insurer Reshapes Banking Portfolio, Shifting from Private Lenders

In the September quarter, Life Insurance Corporation of India (LIC) recalibrated its equity holdings. 

It reduced exposure to leading private banks such as HDFC Bank, ICICI Bank, and Kotak Mahindra Bank, while increasing investments in public sector lender State Bank of India (SBI) and the smaller Yes Bank.

The move reflects a tactical preference for value and resilience amid shifting market dynamics.

LIC’s Portfolio Rebalancing Strategy

LIC, India’s largest institutional investor with stock holdings worth over ₹16 lakh crore, reduced stakes in major private sector banks selling shares worth ₹3,203 crore in HDFC Bank, ₹2,461 crore in ICICI Bank, and ₹2,032 crore in Kotak Mahindra Bank.

 Simultaneously, it acquired an estimated ₹5,285 crore worth of SBI shares and increased its holding in Yes Bank from under 1% to around 4%, as per news reports.

Foreign Investors Take a Different Route

While LIC shifted towards state-owned lenders, foreign investors have shown confidence in private banks. 

Recent moves include Emirates NBD’s acquisition of a majority stake in RBL Bank, Sumitomo Mitsui’s expansion in Yes Bank, and Blackstone’s investment in Federal Bank.

These deals signal sustained global interest in India’s private banking segment.

LIC Share Price Performance

On 10 November 2025, shares of Life Insurance Corporation of India (LIC) closed notably lower, ending the session at ₹899.70, down ₹24.25 or 2.62% from the previous close of ₹924.15.

Read More: Life Insurance Claim Settlement Ratios 2025: How Insurers Performed This Year.

Conclusion

LIC’s latest portfolio adjustments suggest a measured shift towards value-driven opportunities within the banking sector. While PSU banks offer relative valuation comfort and policy tailwinds, private lenders continue to attract foreign participation. 

The evolving investment landscape points to a phase of selective rebalancing rather than a broad sectoral preference.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions. 

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.