LIC Can Now Buy More HDFC Bank Shares: RBI Approves Stake Hike To 9.99%

LIC has received RBI approval to increase its stake in HDFC Bank to 9.99 per cent from its current 4.11 per cent holding, allowing the insurer to acquire an additional 5.88 percentage points.

The development comes after HDFC Bank reported a year-on-year increase in net profit for the April-June quarter of FY27.

Source : Justdial

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Key points generated by AI, verified by newsroom

• LIC received RBI approval to increase HDFC Bank stake.
• Insurer can now hold up to 9.99% in HDFC Bank.
• Approval allows increasing current 4.11% stake substantially.

Life Insurance Corporation of India (LIC) has received the Reserve Bank of India’s approval to increase its holding in HDFC Bank to 9.99 per cent, potentially taking its stake more than twice its current level.

The insurer held 4.11 per cent of HDFC Bank as of August 14, according to the lender’s latest regulatory filing. The approval allows LIC to acquire an additional stake of up to 5.88 percentage points.

HDFC Bank said the RBI issued its approval through a letter dated August 19, 2026, reported The Financial Express.

What RBI Approved For LIC

The central bank has permitted LIC to acquire an aggregate holding of up to 9.99 per cent of HDFC Bank’s paid-up share capital or voting rights.

HDFC Bank, in its regulatory filing, said the approval was granted to LIC under the applicable regulatory framework.

The insurer’s current 4.11 per cent holding means it can increase its stake substantially from the level recorded in mid-August.

HDFC Bank Reports 5% Rise In Q1 Profit

The development comes after HDFC Bank reported a year-on-year increase in net profit for the April-June quarter of FY27.

The private sector lender posted a net profit of Rs 19,060 crore, up 5 per cent from Rs 18,155 crore in the corresponding quarter a year earlier.

Net interest income (NII), meanwhile, increased 7 per cent year-on-year to Rs 33,534 crore from Rs 31,438 crore in the year-ago period.

How LIC And HDFC Bank Shares Performed

HDFC Bank shares closed Wednesday’s session on August 19 at Rs 720 on the NSE, unchanged from the previous close. The stock has lost around 6 per cent in the past month and nearly 21 per cent over six months. The lender's stock inched up nearly 1 per cent and touched Rs 726.90 apiece on Thursday morning.

LIC shares also ended flat on August 19 at Rs 413 on the NSE. The stock has declined nearly 5 per cent over the past month and more than 4 per cent over the last six months. The company's shares touched Rs 419.80 on Thursday morning, clocking a jump of 1.65 per cent.