1 week ago
RBI Approves LIC Stake Increase in HDFC Bank to 9.99%
India’s central bank has allowed LIC to buy more shares in HDFC Bank.
LIC already owned 4.11% of the bank on August 14, 2026.
It can now eventually raise its holding to as much as 9.99%.
This does not mean LIC must buy all those shares immediately.
Any purchases must follow rules set by the RBI and other regulators.
The approval was dated August 19 and was announced by HDFC Bank.
HDFC Bank shares traded higher in some Thursday reports after the news.
The bank also reported a quarterly profit of about ₹19,060 crore.
The Reserve Bank of India approved Life Insurance Corporation of India’s application to acquire up to 9.99% of HDFC Bank’s paid-up share capital or voting rights.
LIC held 4.11% of HDFC Bank as of August 14, 2026, allowing a potential increase of 5.88 percentage points.
The RBI’s approval was communicated in a letter dated August 19, 2026, and disclosed by HDFC Bank in regulatory filings.
LIC’s additional purchases remain subject to banking, foreign-exchange, securities-market and other applicable laws and conditions.
HDFC Bank’s Q1 FY27 standalone profit rose about 5% year over year to roughly ₹19,060 crore, while net interest income increased about 7% to approximately ₹33,534-₹33,536 crore.
- Who
- The Reserve Bank of India, Life Insurance Corporation of India and HDFC Bank.
- What
- The RBI approved LIC’s acquisition of an aggregate holding of up to 9.99% in HDFC Bank’s paid-up share capital or voting rights.
- Where
- India.
- When
- The approval letter was dated August 19, 2026; HDFC Bank disclosed it on August 19 or August 20, depending on the report.
- Why
- The approval followed an application submitted by LIC; the articles do not state a broader reason.
Key facts
- Approving authority
- Reserve Bank of India
- Approved investor
- Life Insurance Corporation of India
- Maximum holding
- 9.99% of HDFC Bank’s paid-up share capital or voting rights
- LIC’s existing holding
- 4.11% as of August 14, 2026
- Potential increase
- Up to 5.88 percentage points
- Conditions
- Compliance with the Banking Regulation Act, 1949, RBI shareholding directions, the Foreign Exchange Management Act, 1999, SEBI regulations and other applicable rules
- Q1 FY27 profit
- ₹19,059.72 crore for the April-June 2027 quarter, up 4.98% year over year
- Q1 FY27 net interest income
- Approximately ₹33,534-₹33,535.95 crore, up about 6.7%-7% year over year
Quotes
HDFC Bank spokesperson
Representative of HDFC Bank
“We would like to inform you that the Reserve Bank of India (“RBI”) vide its letter dated August 19, 2026, has accorded its approval to Life Insurance Corporation of India (“LIC”), for acquiring aggregate holding up to 9.99% of the paid‑up share capital or voting rights in HDFC Bank Limited (“the Bank”). 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.”],”
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Sources
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