"For the eleven months ended February 2009, we have invested Rs 40,000 crore in equities. Equity investments in FY '09 have exceeded the total equity investments made last fiscal," a top LIC official said in Mumbai.

LIC's investment in stock markets every year is around 8-9 per cent of its total premium collection, the official said, adding, "(The) banking sector remains appealing to us."

The state-run insurer recently invested in three large companies, including State Bank of India, taking into account "an attractive valuation and good investment prospects".

The insurance giant picked up a 2.11 per cent stake in SBI for Rs 1,484.12 crore, taking is total shareholding in India's largest bank to 9.16 per cent (4.94 crore shares).