# LIC stake acquisition in Indian banks

> Live situation record from CLSTR: https://clstr.news/situations/lic-stake-acquisition-in-indian-banks
> Updated: 2026-09-05T06:38:00.000Z. Sources: 6. Developments: 2.

The Reserve Bank of India (RBI) has granted the Life Insurance Corporation of India (LIC) approval to increase its holdings in major private sector banks.

In August 2026, the RBI authorized LIC to acquire up to 9.99% of HDFC Bank’s paid-up share capital or voting rights. Prior to this, LIC held a 4.11% stake in the lender.

Following this, in September 2026, the RBI issued formal approval for LIC to increase its stake in ICICI Bank. According to regulatory filings, the authorization was issued in a letter dated September 4, 2026, allowing LIC to acquire an aggregate holding of up to 9.99% of the lender’s paid-up share capital or voting rights. LIC currently holds a 4.35% stake in ICICI Bank. The approval is valid for one year, requiring the acquisition process to be completed by September 4, 2027, or the permission will be automatically cancelled. The transaction remains subject to various statutory and regulatory conditions.

## Timeline

### 2026-09-05: LIC receives RBI approval to acquire up to 9.99% stake in ICICI Bank

The Reserve Bank of India has approved LIC to increase its stake in ICICI Bank to a maximum of 9.99 per cent, provided the acquisition is completed within one year.

6 sources. https://clstr.news/cluster/lic-receives-rbi-approval-to-acquire-up-to-999-stake-in-icici-bank

### 2026-08-20: LIC to increase stake in HDFC Bank following RBI approval

The Reserve Bank of India has approved LIC to increase its stake in HDFC Bank from 4.11% to a maximum of 9.99%.

4 sources. https://clstr.news/cluster/lic-to-increase-stake-in-hdfc-bank-following-rbi-approval

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Cite as: LIC stake acquisition in Indian banks. CLSTR, https://clstr.news/situations/lic-stake-acquisition-in-indian-banks