The Reserve Bank of India (RBI) approves Life Insurance Corporation of India (LIC) to acquire an aggregate stake of up to 9.99% in private-sector lender ICICI Bank. ICICI Bank says the approval covers up to 9.99% of its paid-up share capital or voting rights.
The RBI approval is valid for one year, and LIC must complete the permitted acquisition within that window or the approval lapses. The bank also notes that the clearance does not indicate LIC has already increased its holding to the maximum level; any purchases remain subject to applicable statutory and regulatory requirements and the conditions set by the RBI.
This approval follows an earlier RBI clearance that allowed LIC to acquire up to 9.99% in HDFC Bank. LIC held a 4.11% stake in HDFC Bank as of August 14. With the ICICI Bank clearance, outlets frame the move as part of LIC’s broader efforts to expand potential holdings in major private lenders, while not confirming the final level LIC will actually buy.
