Archive · 6 Sep 2026
RBI Approves LIC to Raise ICICI Bank Stake to 9.99%
The Reserve Bank of India has given Life Insurance Corporation of India permission to buy more shares in ICICI Bank.
LIC can acquire up to 9.99% of the bank’s shares or voting rights.
LIC already owned 4.35% of ICICI Bank in June 2026.
The permission does not mean LIC has already bought the additional shares.
LIC has one year from September 4, 2026, to make any permitted purchase.
If it does not do so within that time, the permission will end.
The purchase must follow banking laws and RBI conditions.
The RBI recently gave LIC a similar permission involving HDFC Bank.
The Reserve Bank of India approved Life Insurance Corporation of India’s application to acquire up to 9.99% of ICICI Bank’s paid-up share capital or voting rights.
LIC must complete any permitted acquisition within one year of the RBI approval letter dated September 4, 2026, or the approval will lapse.
LIC held a 4.35% stake in ICICI Bank as of June 2026, but the approval does not require it to immediately reach 9.99%.
Any stake purchase remains subject to statutory provisions, regulatory requirements and conditions specified by the RBI.
The approval follows a similar RBI clearance allowing LIC to potentially acquire up to 9.99% of HDFC Bank.
- Who
- The Reserve Bank of India, Life Insurance Corporation of India and ICICI Bank.
- What
- The RBI approved LIC’s application to acquire an aggregate holding of up to 9.99% in ICICI Bank.
- When
- The approval letter was dated September 4, 2026, and LIC has one year from that date to acquire the permitted stake.
- Where
- The approval concerns ICICI Bank in India and was disclosed through the bank’s regulatory filing.
- Why
- The approval gives LIC the option to increase its ICICI Bank investment, subject to regulatory requirements and LIC’s investment decisions.
- Maximum permitted holding
- Up to 9.99% of ICICI Bank’s paid-up share capital or voting rights.
- Approval authority
- Reserve Bank of India.
- Approval letter
- Dated September 4, 2026; ICICI Bank said it received it at 9:09 p.m. that day.
- Acquisition window
- One year from the date of the RBI approval letter.
- LIC’s existing ICICI Bank stake
- 4.35% as of June 2026.
- Regulatory condition
- The approval is subject to applicable statutory provisions, regulatory requirements and RBI conditions.
- Related HDFC Bank approval
- LIC also received RBI clearance to potentially acquire up to 9.99% of HDFC Bank; reports cited LIC’s HDFC stake as 4.11% on August 14 and 4.77% in another account.
- LIC’s IDBI Bank holding
- LIC holds a 49.24% stake in IDBI Bank; one report said its bank holdings are constrained by a 10% limit in other commercial banks.
Sources
RBI Approves LIC’s Acquisition of Up to 9.99% Stake in ICICI Bank
RBI okays LIC’s application to acquire up to 9.99% stake in ICICI Bank
LIC ICICI Bank stake: RBI approves insurer’s holding up to 9.99 per cent within one year - Telegraph India
RBI Clears LIC To Acquire Up To 9.99% Stake In ICICI Bank, Sets One-Year Window
LIC Gets RBI Approval To Raise ICICI Bank Stake To 9.99%; Key Details
