HDFC Bank announced that the Reserve Bank of India (RBI) has approved Life Insurance Corporation of India’s (LIC) application to increase its aggregate holding in the bank. LIC can now acquire up to 9.99% of the paid-up share capital. As of August 14, 2026, LIC held 4.11% of HDFC Bank’s total share capital. This approval is subject to various regulatory compliances.
RBI Greenlights LIC Stake Expansion in HDFC Bank
HDFC Bank has received approval from the Reserve Bank of India (RBI) for Life Insurance Corporation of India (LIC) to raise its shareholding. The approval permits LIC to acquire an aggregate holding of up to 9.99% of the paid-up share capital or voting rights in HDFC Bank.
Current Holding and Future Implications
As per the latest available beneficial position on August 14, 2026, LIC currently holds 4.11% of the total share capital of HDFC Bank. This approval from the RBI follows an application made by LIC, and it signifies a potential shift in the bank’s ownership structure.
Regulatory Compliance
The RBI’s approval is contingent upon LIC’s adherence to several conditions. These include compliance with the Banking Regulation Act, 1949, the Reserve Bank of India (Commercial Banks – Acquisition and Holding of Shares or Voting Rights) Directions, 2025, the Foreign Exchange Management Act, 1999, and regulations set forth by the Securities and Exchange Board of India, along with any other applicable statutes and guidelines.
Source: BSE
