Regulatory nod lets LIC expand stake in ICICI Bank up to 9.99%

Life Insurance Corporation has received a regulatory green light from the Reserve Bank of India to increase its ownership in ICICI Bank to a ceiling of 9.99% of the bank’s paid‑up share capital. The permission was communicated by ICICI Bank on Saturday, with the RBI’s approval letter arriving at the bank at 21:09 hrs on 4 September. LIC must complete the acquisition within a year of the approval date; failure to do so will render the permission void. The approval is contingent upon strict compliance with existing statutory and regulatory frameworks. The RBI’s endorsement does not equate to an immediate rise in LIC’s shareholding to the full limit. All transactions will have to follow the conditions set forth by the RBI and other applicable norms. This follows a prior decision in August that allowed LIC to buy up to 9.99% of HDFC Bank, where its stake was recorded at 4.11% on 14 August. The latest clearance opens a channel for LIC to grow its investment in a major private‑sector bank, provided all legal and regulatory criteria are satisfied. Market movements showed LIC’s share price falling more than 1% to ₹415.25 on the BSE, while ICICI Bank’s shares edged down 0.14% to close at ₹1,423, each within their respective 52‑week high‑low ranges.