The Reserve Bank of India (RBI) clears Life Insurance Corporation of India (LIC) to acquire up to a 9.99% aggregate stake in ICICI Bank, the bank and reports say. The approval covers up to 9.99% of ICICI Bank’s paid-up share capital or voting rights. ICICI Bank states it receives the approval letter dated September 4 on the same day, shortly after it was issued.
Under the RBI’s terms, LIC gets a one-year window to complete the purchase of the permitted stake. If the acquisition is not completed within this timeframe, the RBI approval lapses. The approval does not mean LIC has already increased its holding to the maximum level; any buying remains subject to applicable laws, regulatory requirements, and conditions set by the RBI.
The clearance follows similar RBI approval granted earlier for LIC to acquire up to 9.99% in HDFC Bank. Reports note LIC held a 4.11% stake in HDFC Bank as of August 14. Across outlets, the main emphasis is on the RBI’s approval limit and the twelve-month deadline, rather than any immediate change in holdings in ICICI Bank.
