LIC gets RBI approval to acquire up to 9.99% stake in HDFC Bank
1 min read • Updated: January 26, 2024, 2:07 PM
As per the bank's exchange notification, the RBI informed the decision to the LIC through a letter dated 25 January, under which LIC can acquire an aggregate holding up to 9.99% of the paid-up share capital or voting rights of HDFC Bank.
On 25 January, the Reserve Bank of India allowed Life Insurance Corporation of India (LIC) to acquire up to 9.99% stake in HDFC Bank, the country's largest private bank told stock exchanges.
"LIC has been advised by RBI to acquire the aforesaid major shareholding in the Bank within a period of one year i.e. by January 24, 2025," HDFC Bank said in an exchange filing. "Further, LIC must ensure that the aggregate holding in the Bank does not exceed 9.99 percent of the paid-up share capital or voting rights of the Bank at all times," said HDFC Bank.
LIC owned a 5.19% stake in the bank, according to the lender's shareholding pattern as of December 31.
The announcement is likely to come as positive news to shareholders of HDFC Bank, whose shares have witnessed heavy sell off in recent days. The stock has slumped to near 52-week lows, post the announcement of the bank's December quarter earnings.