LIC and ICICI Bank
RBI clears LIC to buy up to 9.99% stake in ICICI Bank within one year
The Reserve Bank of India has granted approval to Life Insurance Corporation of India to acquire an aggregate holding of up to 9.99% in ICICI Bank. The approval, communicated via a letter dated September 4, 2026, requires LIC to complete the stake acquisition within one year from the date of the letter, failing which the approval will be cancelled. ICICI Bank confirmed receipt of the RBI letter in an exchange filing on Saturday.
As of the June 2026 quarter, LIC already held 31,181,7010 shares in ICICI Bank, equivalent to 4.35% of the paid-up capital. This represents more than half of the total stake held by insurance companies in the bank, which collectively owned 8.24% at the end of June 2026. SBI Life Insurance is another major insurer with a 1.43% stake in ICICI Bank.
Mutual funds remain significant investors in ICICI Bank, holding a combined 29.60% stake as of June 2026. SBI Mutual Fund leads with 6.27%, followed by ICICI Prudential Mutual Fund at 4.40%, HDFC Mutual Fund at 3.58%, and Nippon Life India Mutual Fund at 2.55%. Other notable fund houses include Axis, UTI, Kotak, and Aditya Birla Sun Life Mutual Funds.
On Friday, LIC shares closed at ₹416.50 on the NSE, while ICICI Bank shares ended at ₹1,423.70. The RBI’s approval allows LIC to increase its holding subject to compliance with statutory and regulatory provisions. The development places both stocks under market watch as trading resumes.
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