LIC will continue to hold on to its stake in Punjab National bank

Life Insurance Corporation of India (LIC), one of the largest institutional investor in PNB with 13.93% stake will continue to hold on to its investment.

LIC had recently  increased its shareholding in PNB  from 12.20% to 13.93% in the third quarter ended December 2017.

“What happened at Punjab National Bank is an unfortunate event,” said VK Sharma, chairman, Life Insurance Corporation of India. “We will not reduce our stake,” he said. As head of an institution, Sharma said he has full faith in the bank.

Shares of the scam hit bank has been falling since the news of scam broke. LIC had invested in the QIP of Punjab National Bank in December 2017, when the bank had raised Rs 5,000 crore.