Life Insurance Corporation of India (LIC) has acquired around 2% additional stake in Union Bank of India (UBI).

The move increases the shareholding of the state insurer to more than 5%.

Previously, LIC held a 3.09% stake in UBI. Currently, it holds more than 345 million shares in the lender representing 5.06% ownership.

According to a PTI report, LIC picked up more than 147 million shares of UBI in a preferential allotment of shares.

UBI is one of the largest state-owned lenders in India with total business of $106bn.

The merger of UBI with Corporation Bank and Andhra Bank made it the fourth largest bank in terms of branch network.

In January, Union Bank of India completed the integration of its IT systems with that of all branches of erstwhile Andhra Bank.

At that time, Union Bank of India managing director and CEO Rajkiran Rai G said: “We are extremely delighted to achieve complete integration of all branches and delivery channels of erstwhile Andhra Bank and Corporation Bank.

“It opens huge opportunities for our customers and enhances our capability to offer innovative products and services.”

According to the bank website, it has more than 9,500 branches and serves around 120 million customers. The network also includes 13,300 ATMs and 11,700 BC points.

It also has three overseas branches.