RBI allows LIC to increase holding in HDFC Bank from 4.11% to 9.99%

RBI allows LIC to growth holding in HDFC Bank from 4.11% to 9.99% The approval came on a day when HDFC Bank's stock hit 52 weeks low in intraday trade to ₹715.05 before recovering a bit to close at ₹720.15, down 0.42%.

For context, the Reserve Bank of India RBI has accorded its approval to Life Insurance Corporation of India (LIC) for acquiring an aggregate holding of up to 9.99% of the paid-up share capital or voting rights in HDFC Bank Ltd., the bank remarked in a filing with the exchanges on Wednesday (August 19, 2026) night.

"As per the latest available beneficial position I.e. As on August 14, 2026, LIC holds 4.11% of the total share capital of the Bank, " it remarked.

For context, the approval has been granted with reference to the application created by LIC to RBI. The aforesaid approval granted by RBI is subject to the conditions mentioned therein, including compliance with the relevant provisions of the Banking Regulation Act, it continued.

Meanwhile, the stock has been under pressure due to below-expectations financial performance in the last quarter, the sudden resignation of its previous part-time chairman and the lack of clarity on the term extension if it's MD & CEO, Sashidhar Jagdishan, post 26 October 2026.

Taken together, the developments around RBI allows LIC to increase holding in HDFC Bank from 4.11% to point to a situation that is still moving, and the coming days should bring more clarity.