HDFC Bank, LIC shares in focus as RBI approves LIC’s stake hike to 9.99%

Shares of HDFC Bank and Life Insurance Corporation of India (LIC) are expected to be in the spotlight on Thursday, August 20, as the private sector lender on Wednesday, in its filing to stock exchanges, said that the Reserve Bank of India (“RBI”), vide its letter dated August 19, 2026, has accorded its approval to LIC, for acquiring aggregate holding up to 9.99% of the paid-up share capital or voting rights in HDFC Bank.

As per the latest available beneficial position, i.e., as on August 14, 2026, LIC holds 4.11% of the bank's total share capital.

The filing added that the approval has been granted with reference to the application made 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, 1949, Reserve Bank of India (Commercial Banks - Acquisition and Holding of Shares or Voting Rights) Directions, 2025, provisions of the Foreign Exchange Management Act, 1999, regulations issued by Securities and Exchange Board of India, and any other statutes, regulations and guidelines, as applicable," it added.

HDFC Bank Q1 FY27 earnings

HDFC Bank reported a 5% increase in standalone net profit to ₹19,060 crore for the June quarter of the current fiscal year (Q1 FY27).

The country's biggest private sector lender had earned a net profit of ₹18,155 crore in the year-ago period.

However, its total income in the quarter under review dropped to ₹92,184 crore from ₹99,200 crore in the same period a year ago, HDFC Bank said in a regulatory filing.

The lender's interest income increased to ₹79,363 crore from ₹77,470 crore in the same quarter a year ago.

During the period, operating profit of the bank declined to ₹28,169 crore, as compared to ₹35,734 crore in the same quarter a year ago.

Net interest income (NII) grew 7% to ₹33,530 crore from ₹31,440 crore seen in the June quarter, it said.

Net interest margin (NIM) was at 3.26% on total assets, and 3% based on interest earning assets.

The bank's asset quality exhibited improvement with gross non-performing assets (NPAs) declined to 1.17% of gross advances at the end of the June quarter, from 1.4% a year ago.

Similarly, net NPAs, or bad loans, declined to 0.41%, as against 0.47% in the year-ago period.