Life Insurance Corporation of India has received approval from the Reserve Bank of India on Tuesday to proceed with its acquisition of up to a 9.99% stake in HDFC Bank. As of August 14, LIC held a 4.11% stake in the country’s largest private lender. 

With this grant, LIC can increase its stake in HDFC Bank by 5.88 percentage points from its current level. According to HDFC Bank’s regulatory filing, the insurer has been granted approval to acquire an aggregate holding of 9.99% of the lender’s paid-up share capital or voting rights in the bank. 

LIC: HDFC Bank holding may go up to 9.99%

“Pursuant to SEBI Listing Regulations, 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,” HDFC Bank said in its regulatory filing. 

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For the April-June quarter of 2027, the bank posted its net profit at Rs 19,060 crore, rising 5% year-on-year from Rs 18,155 crore reported in the same quarter last year. HDFC Bank’s net interest income in Q1 FY27 was reported at Rs 33,534 crore, up 7% YoY against Rs 31,438 crore reported in the year-ago period. 

LIC-HDFC Bank: Share price

HDFC Bank’s stock ended Wednesday’s (August 19) trade on the NSE flat at Rs 720. Over the past one month, its share price has fallen by 6%, while over the past six months its stock has declined nearly 21%. 

LIC’s share price ended the August 19 trade flat at Rs 413 on the NSE. Over the past one month, its stock has declined nearly 5%, while over the past six months, it has fallen over 4%.