In the year 2022, the Indian stock market stood tall and resilient amid headwinds like the geo-political crisis, inflation, and massive FII selling. In fact, it outperformed many major markets.
Insurance behemoth, the Life Insurance Corporation of India (LIC) got listed on the bourses last year and it has already made investments in many Indian companies. While many companies in its portfolio gave stellar returns, here are three banking companies that doubled LIC’s money this year:
The Karnataka Bank Ltd.
The Karnataka Bank provides a wide range of banking and financial services that involves retail, corporate banking and para-banking activities in addition to treasury and foreign exchange business.
LIC holds a 4.68% stake or 1,45,58,513 shares of the Karnataka Bank. Its share price increased from ₹ 62.90 at the beginning of last year to ₹ 160.05 apiece at 11:22 AM on Tuesday, giving multibagger returns of 154.45%.
Even if LIC would have bought all the 1,45,58,513 shares at the beginning of last year, then it would have invested ~₹ 91.57 crores. At a price of ₹ 160.05, the value of LIC’s holdings in these shares would be ~ ₹ 223 crores. Therefore, the bank has given more than 2x returns to LIC.
UCO Bank
UCO Bank provides retail banking, corporate banking and treasury operations. Its share price increased by a massive 149.24% from ₹ 13.20 to ₹ 32.90 at 11:30 AM on Tuesday to give multibagger returns. LIC holds a 1.24% stake in the banking company or 14,80,33,228 shares.
Even if LIC would have bought all these shares at the beginning of last year, then it would have invested ~₹ 195.40 crores. At a price of ₹ 32.90, the value of LIC’s holdings in these shares would be ~ ₹ 487.03 crores. Therefore, the bank has more than doubled LIC’s investment.
Bank Of Baroda
Bank of Baroda provides a spectrum of services like personal banking, corporate banking, international banking, small and medium enterprise (SME) banking, rural banking, non-resident Indian (NRI) services and treasury services.
Its shares were trading at ₹ 83.80 a year ago and its share price has increased by 123.68% to ₹ 187.45 apiece at 11:43 AM on Tuesday, giving multibagger returns. LIC holds a 4.69% stake or 24,24,89,264 shares of the bank.
Even if LIC would have bought all these shares at the beginning of last year, then it would have invested ~₹ 2032.06 crores. At a price of ₹ 187.45, the value of LIC’s holdings in these shares would be ~ ₹ 4545.46 crores. Therefore, the bank has more than doubled LIC’s investment.
Written by Simran Bafna
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