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LIC picks up 9% in Oriental Bank of Commerce

India's biggest insurance firm, Life Insurance Corporation, has picked up a nine per cent stake in state-run Oriental Bank of Commerce, an economic newspaper reported on Saturday.

The newspaper said the government-owned insurance giant made the purchase in the open market, but did not say at what price the shares were bought.

OBC chairman BD Narang told the newspaper that the insurance firm may have invested in the bank's shares over a period of time.

Senior LIC officials were not immediately available for comment.

LIC recently increased its stake in the state-run Corporation Bank to 27 per cent from12.32 per cent to gain a foothold in southern India. Corporation Bank is based in the southern Indian city of Mangalore and has a strong presence in that region.

The daily said LIC was now looking to increase its foothold in northern India by picking up a stake in New Delhi-based OBC.

Shares of OBC ended 0.28 per cent lower at Rs 34.90 on Friday.

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