LIC to increase stake in HDFC Bank following RBI approval

The Reserve Bank of India (RBI) has granted formal approval to the Life Insurance Corporation of India (LIC) to increase its stake in HDFC Bank. According to regulatory filings from HDFC Bank, LIC is permitted to acquire up to 9.99% of the bank's paid-up share capital or voting rights.

As of August 14, LIC held a 4.11% stake in the private sector lender. With this new authorization, the insurance giant can expand its holdings to approximately 10% through open market transactions or other permitted means. The approval is subject to strict compliance with the Banking Regulation Act of 1949, SEBI regulations, and FEMA guidelines. The RBI has specified that LIC's total holding must not exceed the 9.99% threshold at any time.