LIC to Raise HDFC Bank Stake to 9.99% After RBI Nod
By Business Desk
RBI approves LIC’s request to increase its stake in HDFC Bank to 9.99%, marking a significant development in India’s banking and financial sector.
The Reserve Bank of India (RBI) has granted approval to the Life Insurance Corporation of India (LIC) to significantly increase its stake in HDFC Bank Limited. This regulatory clearance allows LIC to acquire up to 9.99% of HDFC Bank’s paid-up share capital or voting rights.
LIC’s Enhanced Holding Details
LIC’s beneficial position in HDFC Bank stood at 4.11% of the total share capital as of August 14, 2026. The RBI’s approval, communicated via a letter dated August 19, 2026, is contingent upon adherence to several key regulations.
- Adherence to the Banking Regulation Act, 1949.
- Compliance with the Reserve Bank of India Directions, 2025.
- Observance of the Foreign Exchange Management Act, 1999.
- Fulfillment of Securities and Exchange Board of India (SEBI) regulations and other applicable statutes.
The permission to increase holding to 9.99% represents a substantial uplift from its prior stake, underscoring a significant development in India’s financial sector.
HDFC Bank’s First-Quarter Performance
Separately, HDFC Bank’s first-quarter results for the June quarter indicated some pressure on its asset quality. Both Gross and Net Non-Performing Assets (NPAs) experienced a marginal sequential increase.
- Gross NPA rose to 1.17% from 1.15% in the previous quarter.
- Absolute Gross NPA reached ₹35,846 crore in June, up from ₹34,061 crore in March.
- Net NPA increased to 0.41% from 0.38%.
- Absolute Net NPA stood at ₹12,357 crore in June, compared to ₹11,169 crore in March.
The bank additionally reported that its margins were at record lows, with provisions also increasing from the March quarter. Shares of HDFC Bank Ltd concluded the trading day at ₹720.15, marking a decrease of ₹3.05, or 0.42%, on the BSE.