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RBI has approved Life Insurance Corporation of India (LIC) to acquire an aggregate holding of up to 9.99% of HDFC Bank’s

ICICIdirect Research 20 Aug 2026 DISCLAIMER

News: As per exchange filings, RBI has approved Life Insurance Corporation of India (LIC) to acquire an aggregate holding of up to 9.99% of HDFC Bank’s paid-up share capital or voting rights. As of August 14, 2026, LIC held 4.11% of the bank’s total share capital. The approval is subject to compliance with applicable banking, securities and foreign-exchange regulations.

View: The approval provides LIC flexibility to more than double its stake from 4.11% to up to 9.99%, potentially creating incremental institutional demand for HDFC Bank shares. However, the approval itself does not imply that LIC will necessarily increase its stake to the permitted limit, and hence the near-term fundamental impact remains limited.

Impact: Neutral

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