Private lender HDFC Bank shares were in demand on Thursday, with the scrip rising up to 1.09% to an intraday high of Rs 728 per share on BSE.
At 9:16 am, HDFC Bank shares were trading at day's high of Rs 725 per share. In comparison, BSE Sensex was trading at 77,463 levels, up 0.7%.
The stock movement came after the Reserve Bank of India (RBI) approved Life Insurance Corporation of India's (LIC) proposal to raise its stake in HDFC Bank to up to 9.99%.
ALSO READ: LIC Receives RBI Nod To Raise HDFC Bank Stake To 9.99% — Details Inside
In a letter dated August 19, 2026, the central bank approved LIC's proposal to acquire up to 9.99% of the paid-up share capital or voting rights in HDFC Bank, subject to compliance with applicable regulatory provisions.
As of August 14, LIC held a 4.11% stake in HDFC Bank, according to the bank's shareholding data. The RBI approval therefore allows LIC to potentially increase its holding by nearly 5.9 percentage points from its current level.
The approval, however, does not mean LIC will immediately acquire the entire additional stake. The insurer's purchases will remain subject to applicable regulations and the conditions attached to the RBI approval.
The RBI said the approval is subject to provisions of the Banking Regulation Act, 1949, the RBI's Commercial Banks — Acquisition and Holding of Shares or Voting Rights Directions, 2025, the Foreign Exchange Management Act, 1999, SEBI regulations and other applicable laws and guidelines.
For HDFC Bank shares, the approval could provide a positive sentiment boost as it opens the possibility of LIC increasing its ownership in the country's largest private-sector bank.
However, the stock's sustained performance will continue to depend on factors such as loan and deposit growth, net interest margins and overall earnings momentum in coming quarter.
Financially, HDFC Bank Ltd.'s net profit rose 5% year-on-year (YoY) to Rs 19,059 crore in Q1 FY27, broadly in line with estimates of Rs 19,720 crore, according to an exchange filing.
Net interest income (NII) rose 6.7% YoY to Rs 33,534 crore from Rs 31,438 crore. Provisions fell sharply by 78.8% YoY to Rs 3,060 crore, although they rose 17.2% sequentially.
Asset quality weakened marginally, with gross NPA rising to 1.17% from 1.15% and net NPA to 0.41% from 0.38%.
Meanwhile, operating profit declined 21.2% YoY to Rs 28,168 crore. NIM stood at 3.26%, slightly below analysts' estimate of 3.32%.
ALSO READ: HDFC Bank Q1 Results: Net Profit Rises 5% As Provisions Decline; Asset Quality Worsens
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
