LIC raises stake in Central Bank of India to over 6% amid government OFS move

State-owned insurer Life Insurance Corporation of India has increased its stake in Central Bank of India to 6.06% from 3.16% earlier, following a fresh market purchase of shares.

In an exchange filing, the Central Bank of India said LIC acquired 26.26 crore equity shares, representing 2.901% stake in the public sector lender, through market purchases on May 22. Following the acquisition, LIC’s shareholding in the bank rose to 6.06%.

As per the latest shareholding pattern, the promoter group held a dominant 89.27% stake in the company. Insurance companies owned 3.26%, while banks held 1.20%. Foreign portfolio investors (FPIs) accounted for 0.75% shareholding in the company.

Government exercises oversubscription option in OFS

Separately, the Central Bank of India also announced further developments regarding the government’s ongoing offer for sale (OFS) in the bank.

Referring to its earlier disclosure dated May 21, 2026, the bank said the President of India, acting through the Department of Financial Services under the Ministry of Finance, had informed the stock exchanges about the decision to exercise the oversubscription option in the OFS.

Under the original base offer, the government had proposed to sell up to 36,20,56,051 equity shares, representing 4% of the bank’s total paid-up equity share capital. The OFS opened on May 22 for non-retail investors and will open on May 25 for retail investors, employees and non-retail investors carrying forward unallotted bids from T-day.

The government had also retained an option to additionally sell another 36,20,56,051 equity shares, equivalent to 4% of the bank’s total paid-up equity share capital, under the oversubscription option.

The bank said the government has now decided to fully exercise the oversubscription option. Accordingly, the total OFS size has increased to up to 72,41,12,102 equity shares, representing 8% of the bank’s total paid-up equity share capital.

Out of the total offer size, 7,24,11,212 equity shares, or 10% of the offer, will be reserved for retail investors on May 25, subject to valid bids. Additionally, 75,00,000 equity shares, equivalent to nearly 0.1% of the bank’s total issued and paid-up equity share capital, will be offered to eligible employees as part of the issue.

Central Bank of India Q4 performance

Central Bank of India had reported a mixed financial performance for the quarter ended March 2026.

The bank posted a net profit of ₹724.4 crore in Q4FY26, marking a decline of 30% compared with ₹1,033.6 crore reported in the corresponding period last year.

However, net interest income (NII) rose 17.8% YoY to ₹4,002 crore, reflecting growth in the bank’s core lending operations.

On the asset quality front, gross non-performing assets (NPA) improved marginally to 2.67% from 2.70% on a quarter-on-quarter basis. Net NPA, however, edged higher to 0.49% from 0.45% sequentially.

For FY26, the bank’s total deposits increased 13.38% YoY to ₹4,67,923 crore. CASA deposits rose 9.75% to ₹2,20,781 crore, while gross advances also grew 9.75% to ₹2,20,781 crore.

The lender also declared a fourth interim dividend of 6%, translating to ₹0.60 per equity share with a face value of ₹10 for FY26. The bank fixed May 8, 2026, as the record date to determine shareholders eligible for the dividend payout.

(with inputs from agencies)

Disclaimer: This story is for educational purposes only. Please consult with an investment advisor before making any investment decisions.