LIC to Nearly Double HDFC Bank Stake to 9.99% After RBI Nod

The Reserve Bank of India has granted approval to Life Insurance Corporation of India (LIC) to significantly increase its holding in HDFC Bank. This authorization allows LIC to raise its aggregate stake to as much as 9.99% of the bank’s paid-up share capital or voting rights.

As of August 14, 2026, LIC’s existing ownership in HDFC Bank stood at 4.11%. The recent approval thus enables the insurer to nearly double its stake by acquiring an additional 5.88 percentage points.

HDFC Bank confirmed this development via a regulatory filing, referencing the RBI’s official letter dated August 19, 2026. This process underscores the stringent regulatory oversight by the central bank on significant shareholding changes in financial institutions.

HDFC Bank’s Q1 FY27 Performance

The approval comes amidst HDFC Bank’s latest financial disclosures for the April-June quarter of 2027 (Q1 FY27).

• Net profit reached Rs 19,060 crore, representing a 5% year-on-year increase from Rs 18,155 crore in the prior year.
• Net interest income for the quarter grew 7% year-on-year to Rs 33,534 crore, up from Rs 31,438 crore.

Market Reaction and Recent Trends

On August 19, 2026, HDFC Bank’s shares concluded trading flat at Rs 720 on the National Stock Exchange (NSE).

• The bank’s stock has experienced a 6% decline over the last month.
• Over the past six months, the stock has dropped by nearly 21%.

Similarly, LIC’s share price also ended flat at Rs 413 on the NSE on the same day.

• LIC’s stock recorded an approximate 5% decline over the past month.
• Its shares have fallen over 4% during the past six months.

This regulatory green light for LIC to deepen its investment in HDFC Bank signifies a notable move within India’s financial sector, allowing a major institutional investor to increase its footprint in the nation’s largest private lender.