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Tata group’s investment arm has acquired fresh shares of at least two public sector banks, Bank of Baroda and Andhra Bank, and has increased its shareholding of five other lenders.
The banks where Tata Investment Corporation Ltd (TICL) has increased its stake include ICICI Bank, IDBI Bank, Axis Bank, Central Bank of India and Corporation Bank.
It also increased its shareholding in at least three non-banking financial sector entities - IDFC, REC and GIC Housing Finance - during the last fiscal.
The company also holds shares of at least four non-banking financial sector entities - HDFC, IL&FS Investment Managers, LIC Housing Finance and Motilal Oswal Financial Services.
Tata Investment Corporation (TICL) acts as a portfolio investment arm of Tata group.
Incidentally, Mukesh Ambani—led Reliance Industries group also acquired shares in financial sector giants like HDFC, ICICI Bank and Axis Bank during 2011—12 as part of its long—term ‘investments’
These financial investments, estimated to be worth over Rs 1,200 crore, included purchase of shares of six banks —— three each from the public and private sectors —— and one housing finance major HDFC Ltd.
The banks whose shares have been acquired by Reliance Industries Ltd (RIL) also include HDFC Bank, SBI, Punjab National Bank and Canara Bank and these have been classified among ‘long—term investments’ in RIL’s annual report for the year 2011—12.
As per TICL’s annual report, banking sector now accounts for 5.83 per cent of its total investment portfolio, up from 4.83 per cent at the end of previous fiscal 2010—11.
Besides banking, TICL increased its exposure to only the electricals and electronics sector and the bonds during the year ended March 31, 2012.
During the year, TICL also sold its entire shareholding of two banks, Dena Bank and Punjab National Bank (PNB), while its holding remained unchanged in banks like Development Credit Bank, HDFC Bank, Indian Bank, Indian Bank, SBI and United Bank of India.
The book value of TICL’s entire banking sector equity holding rose by about Rs 20 crore to Rs 74.5 crore during 2011—12, although their market value fell marginally from Rs 164 crore to Rs 157 crore owing to a sluggish market trend.
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