LIC gets RBI nod to increase HDFC Bank stake to 9.99 pc; stocks trade higher

LIC shares rose about 1 percent on Thursday after the Reserve Bank of India gave the green light for the insurer to lift its holding in HDFC Bank to as much as 9.99 percent.

HDFC Bank disclosed in a regulatory filing that the RBI has sanctioned LIC’s request to acquire up to 9.99 % of the bank’s paid‑up share capital or voting rights.

As of August 14, LIC’s stake in HDFC Bank stood at 4.11 % of total share capital, the filing showed.

The RBI nod grants the state‑owned insurer leeway to boost its stake in the private lender considerably, provided it meets all regulatory and statutory obligations.

The central bank’s approval comes with conditions it set out and requires adherence to applicable SEBI rules, the filing noted.

Nevertheless, the clearance does not obligate LIC to jump straight to a 9.99 % holding; any further increase must follow the RBI’s stipulated conditions and other relevant regulations.

LIC ranks among India’s biggest institutional investors, whereas HDFC Bank is counted among the nation’s top private‑sector banks.

In early BSE trade on Thursday, LIC shares were up roughly 1 % at ₹417.40. The PSU stock has hit a 52‑week high of ₹468.30 and a low of ₹361, per exchange data.

HDFC Bank’s shares also climbed, gaining 1.09 % to ₹728 on the same exchange. The bank’s stock has touched a 52‑week peak of ₹1,020.35 and a trough of ₹715.05.