RBI allows LIC to increase holding in HDFC Bank from 4.11% to 9.99%
The Reserve Bank of India has approved LIC's request to increase its stake in HDFC Bank from 4.11% to 9.99%. This decision comes as HDFC Bank faces stock market pressure due to recent financial performance and leadership uncertainty.
Why it matters
The move is significant for the Indian banking sector and reflects institutional confidence in HDFC Bank despite recent volatility.
The Reserve Bank of India RBI has accorded its approval to Life Insurance Corporation of India (LIC) for acquiring an aggregate holding of up to 9.99% of the paid-up share capital or voting rights in HDFC Bank Ltd., the bank said in a filing with the exchanges on Wednesday (August 19, 2026) night.
“As per the latest available beneficial position i.e. as on August 14, 2026, LIC holds 4.11% of the total share capital of the Bank,” it said.
The approval has been granted with reference to the application made by LIC to RBI. The aforesaid approval granted by RBI is subject to the conditions mentioned therein, including compliance with the relevant provisions of the Banking Regulation Act, it added.
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