- LIC approved by RBI to raise stake in HDFC Bank up to 9.99% of paid-up capital
- LIC currently holds 4.11% stake, can increase by nearly 5.9 percentage points
- Approval subject to Banking Regulation Act, FEMA, SEBI, and other laws
The Reserve Bank of India has approved Life Insurance Corporation of India's (LIC) proposal to acquire up to 9.99% of the paid-up share capital or voting rights in HDFC Bank.
In a letter dated August 19, 2026, the RBI granted the approval to LIC, subject to compliance with applicable banking, foreign exchange, securities market and other regulatory provisions.
As of August 14, LIC held a 4.11% stake in HDFC Bank, meaning the insurer can potentially raise its holding by nearly 5.9 percentage points from its current level.
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The approval is subject to the 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.
LIC Q1 Performance
LIC reported a 23% year-on-year rise in net profit to Rs 13,492 crore in the first quarter, compared with Rs 10,987 crore a year earlier.
Net premium income increased 7% to Rs 1.27 lakh crore, while other income rose sharply to Rs 635 crore from Rs 130 crore.
Overall annualised premium equivalent (APE) grew 8.2% to Rs 13,692 crore. Group business APE increased 10.2% to Rs 6,160 crore, while first premium income rose 22% to Rs 9,217 crore.
Value of new business (VNB) jumped 61% year-on-year to Rs 3,136 crore, with the VNB margin expanding to 22.9% from 15.4%.
LIC's solvency ratio stood at 2.42, up from 2.35 in the preceding quarter and 2.17 a year earlier.
The insurer's 13th-month persistency ratio stood at 70.4%, compared with 70.9% a year earlier, while the 61st-month persistency ratio improved to 61.3% from 58.3%.
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