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ICICI Bank disclosed in a regulatory filing on 5 September 2026 that the RBI has approved LIC acquiring an aggregate holding of up to 9.99% in the bank.
The approval letter reached ICICI Bank on 4 September 2026 at 9:09 pm and stays valid for one year, lapsing in September 2027 if unused.
LIC held 31,18,17,010 shares, or 4.35% of ICICI Bank, as on the quarter ended 30 June 2026.
A similar RBI approval for up to 9.99% in HDFC Bank was granted to LIC on 14 August 2026, when it held 4.11% there.
The clearance is an enabling permission only, not evidence that any shares have actually been bought.
Central bank; approves acquisition of major shareholding in banks and frames ownership norms
India's largest life insurer and among the biggest domestic institutional investors in listed equity
One of India's largest private sector banks, incorporated in 1994 and listed on Indian stock exchanges
Regulates insurers, including how much an insurer may invest in a single company
The statute under which the RBI regulates acquisition of shares and voting rights in banking companies. Prior RBI approval is needed before any person acquires a major shareholding, and the regulator may attach conditions on timing and compliance.
Established LIC in 1956 by nationalising life insurance in India. It governs the corporation whose investment decision is at issue here.
Created IRDAI, the insurance regulator that separately governs an insurer's investment exposure to a single company.
RBI approves LIC acquiring up to 9.99% in HDFC Bank; LIC's holding there stood at 4.11%.
HDFC Bank records LIC's 4.11% stake in a regulatory filing.
RBI approval letter for ICICI Bank reaches the bank at 9:09 pm.
ICICI Bank discloses the approval in a regulatory filing.
Deadline by which LIC must act on the approval, failing which it lapses.
General Awareness > Banking Regulation and Financial Institutions
GS Paper III > Indian Economy: Banking, Financial Institutions and Regulation
Acquisition of shares or voting rights crossing the regulatory threshold in a bank, requiring prior RBI approval under the Banking Regulation Act, 1949.
The part of a company's issued capital for which shareholders have actually paid; the base on which the 9.99% ceiling is computed.
A regulatory cap on the share of votes a single shareholder may exercise in a bank, used to prevent concentration of control.