FILE PHOTO: A bird flies past the logo of Life Insurance Corporation of India (LIC) at one of its offices in New Delhi, India September 14, 2021. REUTERS/Anushree Fadnavis/File Photo
| Photo Credit: ANUSHREE FADNAVIS
The Reserve Bank of India (RBI) has approved a proposal of the Life Insurance Corporation of India (LIC) to acquire up to 9.99% stake in HDFC Bank.
Shareholding pattern details for the December quarter filed by HDFC Bank show that LIC holding in the private lender stood at 5.19%. Under the RBI approval, the State-owned insurer is required to “acquire major shareholding in HDFC Bank within a period of one year (January 24, 2025).”
In doing so, LIC must ensure that its “aggregate holding in the bank does not exceed 9.99% of the paid-up share capital or voting rights of the bank, at all times,” the insurer said on Friday in a filing on the RBI’s January 25 decision. The insurer had applied to the central bank on November 30.
