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HDFC Bank shares rise after RBI approves LIC stake increase
RBI approval allows LIC to raise its holding to up to 9.99%, up from a 4.11% stake as of August 14, 2026.
HDFC Bank shares climbed as much as 1% on the NSE on Thursday after Life Insurance Corporation of India received Reserve Bank of India approval to increase its stake in the private lender.
According to the bank, RBI approved LIC to acquire an aggregate holding of up to 9.99% of HDFC Bank’s paid-up share capital or voting rights. The filing said LIC held 4.11% as of August 14, 2026, and the RBI communicated the approval via a letter dated August 19, 2026, subject to conditions including compliance with the Banking Regulation Act, 1949, RBI directions, the Foreign Exchange Management Act, 1999, and applicable SEBI rules.
HDFC Bank added that the approval follows an application filed by LIC and is linked to regulatory requirements. The move comes while domestic investors have been adding to their positions, with mutual funds lifting their stake to 30.62% in the June quarter from 29.54% in March.
Despite the stake approval, the stock has faced broader pressure, with HDFC Bank down 6.7% over the past month and 26.8% year-to-date at the time of the report, the outlet noted.