Life Insurance Corporation of India (LIC) has hiked its stake in ICICI Bank, the country's largest private sector lender, to 9.38 per cent. It also raised its holding in state-run Indian Overseas Bank to 7.09 per cent.

Government-owned insurance major LIC bought 22.7 million shares worth Rs145.62 crore in ICICI Bank through open market transaction, the private sector lender said in a filing with the Bombay Stock Exchange (BSE).

This represents 2.04 per cent equity stake in ICICI. LIC already owns 7.34 per cent stake in ICICI Bank. LIC now holds over 104.4 million shares representing 9.38 per cent stake in the bank.

In another filing  with the BSE, state-run Indian Overseas Bank said LIC has raised its stake in the bank to 7.09 per cent by acquiring a further 2 per cent, or 11.4 million shares.

LIC acquired the shares in January-February 2009 for around Rs68.7 crore, the filing said.

LIC also hiked its stake in state-run gas distribution company Gail to 9.98 per cent through open-market transactions as well as bonus allotment, Gail India said in a filing with the BSE.

Gail said LIC has purchased over 59.2 million shares, representing two per cent stake in the company, between 21 March 2007 and 13 February 2009.

LIC bought 73.8 million shares worth Rs1,132.97 crore and sold 14.6 million shares for Rs546.77 crore, making a net acquisition of 59.2 million shares, including over 3.88 crore bonus shares, or 2 per cent of its equity, the filing added.

Prior to this, LIC held 7.98 per cent stake in Gail, which now stands at 9.98 per cent, representing over 126.6 million shares, the filing said.