Life Insurance Corporation of India continues to reduce its holding in the premier bank. During the March quarter it reduced its holding in SBI to 70.31 crore from 75.87 crore in the December quarter.

This was despite the marginal increase in exposure by institutions on the stock in January-March. The stake held by MFsat the end of the quarter increased to 8.42 per cent from 8.12 per cent and FIIs to 9.48 per cent from 9.40 per cent. However, the holding by insurance companies fell to 9.94 per cent.

According to analysts, LIC booked profits in SBI, as the government’s demonetisation drive (in November-December) squeezed demand and slowed down industry.