RBI Clears LIC to Acquire Up to 9.99% Stake in ICICI Bank
Life Insurance Corporation of India (LIC) has received approval from the Reserve Bank of India (RBI) to acquire an aggregate holding of up to 9.99 per cent in ICICI Bank’s paid-up share capital or voting rights. The approval, conveyed via an RBI letter dated September 4, 2026, received by ICICI Bank at 9:09 p.m. the same day, permits LIC to build its stake within one year from the date of the letter, after which the approval will lapse if not exercised.
The regulatory filing by ICICI Bank clarified that the approval is subject to compliance with all applicable statutory and regulatory requirements. It emphasized that failure to acquire the stake within the one-year window would result in the cancellation of the RBI’s approval.
This development aligns with LIC’s recent strategy of increasing its exposure to major private sector banks. Earlier, in August 2026, RBI had granted similar approval for LIC to raise its stake in HDFC Bank to up to 9.99 per cent. At that time, LIC already held 4.11 per cent of HDFC Bank’s share capital, as disclosed in the bank’s regulatory filing dated August 19, 2026.
The latest approval does not indicate any immediate acquisition by LIC in ICICI Bank but grants the insurer the regulatory clearance to pursue such an investment over the next twelve months. Market observers note that LIC, as India’s largest institutional investor, often uses such approvals to gradually increase its stakes in financially strong private lenders.
LIC’s shares last traded at Rs 415.35, reflecting a decline of 0.37 per cent on the day. No further details about the timing or size of any potential stake purchase in ICICI Bank have been disclosed in the regulatory filings.
The RBI’s approvals for both ICICI Bank and HDFC Bank underscore LIC’s ongoing efforts to expand its equity holdings in leading private banks within the regulatory ceiling of 9.99 per cent, which requires central bank clearance for any exceedance beyond that threshold.
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