HDFC Bank Shares Rise on RBI Nod for LIC Stake Increase

HDFC Bank shares advanced up to 1.09% on Thursday, reaching an intraday high of Rs 728 per share on the BSE. This surge followed the Reserve Bank of India’s (RBI) approval for the Life Insurance Corporation of India (LIC) to raise its stake in the bank to a maximum of 9.99%.

• LIC held a 4.11% stake in HDFC Bank as of August 14.
• The approval permits a potential increase of nearly 5.9 percentage points from its current holding.
• The RBI’s letter, dated August 19, 2026, subjects this approval to compliance with various regulatory provisions.

These provisions include adherence to the Banking Regulation Act, 1949, and SEBI regulations. This development is broadly anticipated to provide a positive sentiment boost for HDFC Bank shares in the near term.

Q1 FY27 Financial Performance Detailed

In its Q1 FY27 financial results, HDFC Bank reported a net profit of Rs 19,059 crore, marking a 5% year-on-year increase. This figure was largely consistent with analyst estimates of Rs 19,720 crore.

• Net interest income (NII) saw a 6.7% YoY rise, totaling Rs 33,534 crore.
• Provisions significantly decreased by 78.8% YoY to Rs 3,060 crore.
• Provisions experienced a sequential increase of 17.2% during the quarter.
• Operating profit declined by 21.2% YoY, settling at Rs 28,168 crore.

The bank’s asset quality showed a slight deterioration, with gross non-performing assets increasing to 1.17% from 1.15%. Net NPA also rose to 0.41% from 0.38%, while the Net Interest Margin stood at 3.26%, falling slightly below analysts’ expectations.

HDFC Bank’s sustained performance will continue to rely on critical financial indicators, including loan and deposit growth, net interest margins, and overall earnings momentum.